San Mateo-based NetSuite Inc. has initiated the auction of 6.2 million shares of common stock, the first step in its initial public offering.

The auction, which will set the price and allocation of shares for the IPO, is expected to end around the close of the markets on Wednesday, Dec. 19. The company, which is backed largely by Oracle Corp. (ORCL) CEO Larry Ellison, has said it expects shares to end up costing between $13 and $16.

The on-demand business management software firm has said it expects to trade on the New York Stock Exchange with a ticker symbol of “N.”