Software-as-a-service business suite provider NetSuite has revealed that it plans to raise up to $99m from its forthcoming IPO.
The company is expecting to offer 6.2 million shares at $13 to $16 per share when it launches the IPO, which will be conducted using an auction format. The company will trade on the New York Stock Exchange under the symbol N.
During the third quarter NetSuite increased its year-on-year revenue from $18m to $28.1m and reduced its loss from $9.2m to $1.8m. For the nine-month period the company sustained a loss of $21m on revenue of $77m, compared to a loss of $28m on revenue of $47m in the year-ago period. It has approximately 5,400 customers.
NetSuite is majority-owned by Oracle’s Larry Ellison and related family trusts and that situation will continue after the IPO. However, action was taken recently to create a lock box limited liability company for Ellison’s shares which will prevent him voting on any significant issues. The action was taken because Ellison’s position as CEO represents a potential conflict of interest. Oracle is cited as a competitor to NetSuite.