Underwriters for Rally Software Development Corp., a Boulder-based provider of Agile software development products and services, set the terms for the firm's planned initial public offering at 5.75 million shares priced in the range of $11 to $13 per share.

At the midpoint of the range, the offering would raise $69 million. Rally's market value would be roughly $270 million, according to documents filed with the Securities and Exchange Commission.

Rally's estimated net proceeds from the offering are nearly $62 million, based on a $12-per-share price, and those net proceeds would increase or decrease by $5.3 million for every $1 increase or decrease in the public offering price.

If the underwriters exercise their options in full, Rally's proceeds could climb to $71.3 million, officials said in the registration documents.

An offering date has not been scheduled.

Rally officials intend to use the proceeds for working capital, other general corporate purposes, data structure infrastructure, sales force, expansion of its international presence and -- potentially -- for the acquisition of other firms.

Rally plans to have its stock listed on the New York Stock Exchange under the symbol "RALY."

Lead book-running managers for the offering are Deutsche Bank Securities and Pipe Jaffray. Needham & Co., JMP Securities and William Blair are acting as co-managers.

Since its inception, Rally has raised about $70 million in venture funding. Investors include Meritech, Greylock Partners, Boulder Ventures, Vita Ventures, Mohr Davidow Ventures and Mobius Venture Capital.

For the fiscal year that ended on Jan. 31, Rally lost $10.9 million on revenue of $56.8 million. During the comparable period a year ago, Rally lost $11.6 million on revenue of $41.3 million, according to financial statements filed with the SEC.

Rally has 360 employees as of Jan. 31.

Contact Camera Business Writer Alicia Wallace at 303-473-1332 or wallacea@dailycamera.com.