NetSuite has kicked off the auction for its initial public offering of 6.2 million shares on the market.
The Web-based business management software company expects to price the offering after the stock market closes on or about Dec. 19. In previous SEC filings, the company has indicated it expects to price the stock between $13 and $16 per share. That would give the company a market capitalization of between $773.6 million and $952.2 million, according to the Associated Press. If the IPO is priced at $14.50, NetSuite would raise approximately $80.9 million from the offering.
The company plans to use the proceeds to repay an $8 million balance on its secure line of credit from Tako Ventures, a group controlled by Oracle CEO Larry Ellison, as well as for capital expenditures of $10 million to $15 million, and for working capital and other general purposes. The company said it may also use a portion of the proceeds to acquire other businesses, products or technologies, but said it had no agreements or commitments for specific acquisitions at this time.
Credit Suisse Securities will act as sole book-running manager for the long-anticipated offering, with W.R. Hambrecht acting as co-manager. The underwriters will have a 30-day option to purchase up to 930,000 additional shares.
The offering will be conducted as a modified Dutch auction, similar to Google's IPO in 2004. The company plans to list its stock on the New York Stock Exchange under the ticker symbol N. The preliminary prospectus is available at www.netsuiteipo.com.
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