SAN FRANCISCO -- While NetSuite's(N Quote) newly minted shareholders may feel first-trading-day blues, look for the company's Dutch auction-style IPO process to be repeated more in 2008.
NetSuite shares priced Wednesday at $26 and were trading recently at $27.75, only 6.7% higher. Holders of the new issue accustomed to seeing a first-trading day lift in the high double-digits may feel as though the Grinch stole their payoff.
But for NetSuite and its venture investors, the stock's performance Thursday proves they made a wise choice by forgoing the typical placement of shares. The deal raised $161.2 million for NetSuite, approximately double the base price the company had filed to raise. It also gave the company a market cap above $1.55 billion.
"The early big winner here is undoubtedly NetSuite, and the losers -- the investors -- are left questioning why they put in bids that were unrealistic," IPO Boutique analyst Scott Sweet wrote in a note Thursday. ...
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