NetSuite IPO Price Rises to $26

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NetSuite Inc. (N) is expected to sell shares to the public Thursday in an inital public offering priced at $26 a share, twice the price anticipated in the company’s earlier SEC filings. NetSuite’s IPO was priced using a Dutch auction, and the company raised target range twice this week, indicating strong Wall Street interest in the stock. NetSuite first set the price range at $13 to $16, then raised it to between $16 and $19 on Tuesday, and to between $19 and $22 on Wednesday.

NetSuite is selling 6.2 million shares of common stock, which at the $26 IPO price would raise about $161.2 million. The San Mateo, Calif. company offers on-demand business managment software as a service (SaaS) applications, including ERP, CRM and accounting apps.

Oracle CEO Larry Ellison is the majority owner of NetSuite, has 5,300 customers and $67 million in 2006 revenues, but has a year-to-date loss of $20.6 million. The company’s data center operations came under scrutiny earlier this year when NetSuite revealed in an SEC filing that it didn’t have a backup data center, even though its primary data center is in an earthquake zone.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.