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NetSuite, Backed by Ellison, Raises IPO Price Range |
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2007-12-18 13:55 (New York) |
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By Elizabeth Hester |
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Dec. 18 (Bloomberg) -- NetSuite Inc., the software maker majority-owned by Oracle Corp.'s Larry Ellison, increased the maximum amount it's seeking in an initial public offering to $135.5 million. |
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The company plans to sell 6.2 million shares for $16 to $19 apiece, according to a filing today with the U.S. Securities and Exchange Commission. San Mateo, California-based NetSuite had previously projected a $13 to $16 range. |
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NetSuite's sales growth has topped 50 percent for the past three quarters, bolstered by deals with businesses that have less than 1,000 employees. The company competes with Oracle and SAP AG, offering programs that handle finance, customer- management and human-resources tasks online. Its Internet-based software is used by more than 5,400 customers. |
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The increased price range follows a surge in sales this quarter, said Francis Gaskins, president of IPODesktop.com Inc.in Marina del Rey, California. ``They are having a good December quarter,'' he said. |
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The company is selling shares through an Internet auction, similar to Google Inc.'s offering in August 2004. Investors will submit the number of shares they want and the amount they're willing to pay. The final price will be the highest amount at which all shares being offered can be sold. |
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After the offering, 59.5 million shares of common stock will be left outstanding, NetSuite said in the filing. That values the company at as much as $1.13 billion. |
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Underwriters Credit Suisse Group and WR Hambrecht & Co. have the option to sell an additional 930,000 shares if there's enough demand, bringing the total to 7.13 million. The shares will trade on the New York Stock Exchange under the symbol ``N.'' Spokeswoman Mei Li didn't immediately return a call seeking comment. |
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NetSuite had a net loss of $1.8 million in the third quarter, narrower than the $9.22 million a year earlier. Sales rose 56 percent to $28.1 million, NetSuite said in a Nov. 29 filing. |
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--With reporting by Rochelle Garner and Vivek Shankar in San Francisco. Editor: Nick Turner, Julie Alnwick |