Welcome | Sign In
ECommerceTimes.com
Vendors

NetSuite IPO Rakes In $161M

Print Version
E-Mail Article
Reprints
NetSuite IPO Rakes In $161M

NetSuite's offering of 6.2 billion shares represents a 10 percent stake in the company, which means that at $42 a share, its total market value is roughly $2.6 billion. After its spot-on IPO, the question is whether its share price can stay at its current high level.


Tips to Integrate Social Media into Your Day-to-Day Media Monitoring
Is social media part of your PR and marketing strategy? This white paper is filled with tips on how to listen to conversations about your brand in the media (social media, print, TV and internet) using the latest tools and techniques. Download Now.

NetSuite has sold 6.2 million shares to investors in a Dutch auction this week, raising a healthy US$161 million.

The haul from its long-awaited initial public offering came in spite of -- or perhaps because of -- its moving target price. NetSuite ultimately debuted at $26 per share after jumping from a target price of $13 to $16 per share to a target of $16 to $19 per share.

In short, the IPO was a success Download Free eBook - The Edge of Success: 9 Building Blocks to Double Your Sales, Fred Ruffy, analyst with the investor education firm Optionetics told CRM Buyer, and the company was dead-on with its price target. By increasing it more than $10 per share from the first target, it was able to raise twice the expected amount.

'N' Is for 'NetSuite'

The stock, which is trading under the symbol "N," closed Thursday at $35.50, up 37 percent from its IPO price.

On Friday morning, the stock continued to trade up to a high of almost $46 a share. It was up $6.50 to $42 in midday action.

The timing was right, because NetSuite's debut on the New York Stock Exchange coincided with a broader rally in the technology sector, Ruffy observed.

"The advance was sparked by an upbeat earnings report from Oracle," he noted. Shares of Oracle (Nasdaq: ORCL) were up 8.3 percent on the heels of its earnings announcement Wednesday afternoon, and the rally helped boost investor confidence in the Larry Ellison-backed NetSuite.

"In sum, Oracle helped spark two days of strength in the technology sector, and that in turn provided an ideal market environment for NetSuite's IPO, which has been hotly anticipated to begin with," remarked Ruffy.

SaaS Market

Now, the question is whether the share price can stay at its current high level. The offering of 6.2 billion shares represents a 10 percent stake in the company, Ruffy said, which means that at $42 a share, NetSuite's total market value is roughly $2.6 billion.

With the IPO under its belt, NetSuite joins Salesforce.com (NYSE: CRM) and RightNow (Nasdaq: RNOW) as publicly traded entities. NetSuite plans to use the proceeds to make acquisitions, among other plans, according to filings with the Securities and Exchange Commission.

In the Software as a Service community, that means the company will likely be going to market with a wider array of functions than it has already built out in its front-office/back-office suite.


Print Version E-Mail Article Reprints More by Erika Morphy


More by Erika Morphy

Windows 7 Flies Off the Shelves
November 06, 2009
Early sales figures on Windows 7 boxed software suggest a high level of consumer enthusiasm for the OS. Unit sales were a whopping 234 percent higher than Vista's out of the gate. The revenue haul was not as impressive, as Microsoft offered sharp discounts to spur presales. Also, sales of PCs with Windows 7 preinstalled have been lackluster -- but October is historically a weak month for PC sales.
Southwest Doesn't Fool Around
November 06, 2009
Either Southwest Airlines had better deals for my favorite route than its competitors or its superior Web site tools made it easier for me to ferret them out. Either way, kudos to Southwest. In the not-so-hot department were the airline's long list of what passengers weren't allowed to do and its very short list of what Southwest was obliged to do for them. Left me feeling a little chilly.
Commerce Search Puts Google Inside Retailers' Catalogs
November 05, 2009
Google has launched a new cloud-based search tool targeting enterprise-level e-commerce operations, just in time for the 2009 holiday selling season. Commerce Search provides a set of features designed to improve the relevance of results for consumers searching a retailer's own product catalog, while boosting cross-selling opportunities.
Don't miss a story -- sign up for our FREE e-mail newsletters and view the latest headlines at a glance.
Tech News Flash [ View Sample ]
E-Commerce Minute [ View Sample ]
ECT News Network Weekly Newsletter [ View Sample ]
Shortcuts
ECT News Network Information
Reader Services
Corporate
ECT News Network