Web-based accounting software vendor NetSuite went public on the New York Stock Exchange at $26 per share after raising its target price.
The company, whose main investor is Oracle CEO Larry Ellison, said it would put 6.2 million shares on the market, about a 10 percent stake in the company. The stock jumped $9.50 to close at $35.50.
NetSuite had originally planned to price the stock at a range of $13 to $16, then raised it to between $16 and $19, and later to between $19 and $22, before finally pricing it at $26.
The company used a Dutch auction for the IPO, similar to the process Google employed so successfully for its 2004 IPO. Credit Suisse Securities (USA) LLC served as sole book-running manager for the offering, with W.R. Hambrecht + Co. LLC acting as co-manager.
The IPO is expected to raise nearly $161 million for NetSuite, giving the company a market value of over $1.5 billion and still leaving Ellison with a stake of over $1 billion. The company was founded by a former Oracle programmer, Evan Goldberg, and was originally called NetLedger.
