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Ellison-Backed IPO Wraps '07
NetSuite's auction format puts off some investors
By Jim O'Neill
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Posted Dec 17, 07 7:40 AM CST
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(Newser)
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On-demand software company NetSuite goes public this week with an offering likely to draw the bulk of attention in an otherwise quiet finale for IPOs. Only three firms will go to market, compared to eight in last year’s final week. Oracle CEO Larry Ellison’s NetSuite hopes to raise $100 million, despite never having been profitable, reports the Wall Street Journal.
NetSuite revenue was up 63% over 2006 in the first three quarters and, despite a $1.8 million loss in the third quarter, the outlook excites some investors. "Their top-line growth is outstanding," said one analyst. Not everyone agrees. NetSuite’s IPO will go out as a modified auction, which could drive the price beyond market demand.