NetSuite IPO Seeks to Raise $99 Million

NetSuite (N) said Wednesday that it plans to sell 6.2 million shares at $13 to $16 a share in its initial public offering, which could raise $99 million and give the software as a service (SaaS) provider a market value of about $950 million. The company said overallotments could result in the sale of 565,000 additional shares by the company and 365,000 by existing holders.

Oracle CEO Larry Ellison is the majority owner of NetSuite, has 5,300 customers and $67 million in 2006 revenues, but has a year-to-date loss of $20.6 million. The company's data center operations came under scrutiny earlier this year when NetSuite revealed in an SEC filing that it didn't have a backup data center, even though its primary data center is in an earthquake zone.