NetSuite IPO Brings Market Early Christmas Gift

Ellison-backed software provider sees its price soar 36.5%
By Jim O'Neill,  Newser User
Posted Dec 21, 2007 6:19 AM CST
Oracle CEO Larry Ellison smiles during his keynote address at Oracle Open World conference in San Francisco, in this Oct. 25, 2006 file photo. NetSuite Inc., an online software service controlled by Ellison,...   (Associated Press)
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(Newser) – Online software provider NetSuite reminded Wall Street of the good old days yesterday as the year’s final IPO scored a 36.5% increase over its opening price, reaching $35.50 by the NYSE closing bell, reports the Wall Street Journal. The company, backed by Oracle CEO Larry Ellison, in the last week doubled its target price from near $13 to $26.

NetSuite cautioned investors not to expect a short-term profit, but the market’s eagerness drove the bidding up in a Dutch auction process that saw NetSuite bump its target price for the 6.2 million shares three times this week. "Investors put in overzealous high bids to beat others in a scramble to get shares," said an IPO researcher.