NetSuite readies for IPO

San Mateo business software firm NetSuite Inc. filed its intention to create an initial public offering with the federal Securities and Exchange Commission on Monday, ending months of speculation about the long-discussed IPO.

NetSuite will offer stock valued at up to $75 million, it indicated in its filing document. The number and value of shares were not listed, and the sale will be made via auction open to the public, rather than limited to certain investors. Credit Suisse Securities LLC and San Francisco’s WR Hambrecht & Co. are managing the offering.

NetSuite manufactures a suite of online business-management software for small- to medium-size businesses, a field of growing interest to both startup firms and major players such as Germany’s SAP AG (SAP) and Redwood City’s Oracle Corp. (ORCL).

The spending of those under-1,000-person businesses is expected to grow 11.3 percent annually through 2010, according to projections cited in the filing. NetSuite’s products are delivered through Web browsers to its customers, but it competes against both traditional and online business software firms.

“NetSuite is one of the companies that have moved beyond that [traditional software] to delivering it as a service,” said Haim Mendelson, professor of electronic business and commerce at the Stanford Graduate School of Business.

NetSuite was founded by former Oracle employees Zachary Nelson and Evan Goldberg, with Oracle CEO Larry Ellison as its major backer. Ellison will retain a controlling interest in NetSuite after the IPO, according to the filing. He controlled 74 percent of the company’s stock as of March.

kwilliamson@examiner.com

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