NetSuite Files for IPO - TheStreet

NetSuite Files for IPO

It will sell about $75 million of stock.
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NetSuite

got off to a slow start, but it is finally on a growth path.

The software-as-a-service maker, founded in 1998, filed its first registration statement Monday with the

Securites and Exchange Commission

for its initial public offering. It expects to issue a small stake to the public, of up to $75 million in shares, through a Dutch auction.

The San Mateo, Calif.-based maker of customer-relationship-management software had revenue of $67.2 million in 2006 and is a smaller competitor to

Salesforce.com

(CRM) - Get Report

, which was founded in 1999 by former

Oracle

(ORCL) - Get Report

executive Marc Benioff.

NetSuite may even compete with Oracle, yet Oracle CEO Larry Ellison stands to benefit from the IPO: He and his family own approximately 74% of NetSuite, through Tako Ventures, and will retain control of the company.

NetSuite has a way to go to catch up to Salesforce.com, which had revenue of $162.4 million for the quarter ended in April.

But NetSuite's revenue is on a steeper growth curve. Its revenue grew 85% in 2006 and 72%, year over year for the quarter ended in March. Salesforce grew 60% for the year ended in January and 55% for the quarter ended in April.

While growing, NetSuite still has yet to turn a profit: It lost $23.4 million in 2006.

Credit Suisse Securities and WR Hambrecht are underwriters for the IPO.