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SAN MATEO, Calif. (AP) -- Online business software service NetSuite Inc. said Wednesday that its initial public offering has closed -- totaling $185.4 million after the IPO's underwriters exercised their option to buy additional shares. NetSuite shares spiked 49 percent since the company's IPO of 6.2 million shares priced at $26, well above the initial target range of $13 to $16 per share. The stock closed at $38.75 on Monday. The overallotment option entitled the bankers to buy an additional 565,000 shares from the company and 365,000 shares from a group of stockholders, including Chief Executive Zachary Nelson and Chairman and Chief Technology Officer Evan M. Goldberg. Goldberg, a former Oracle employee, started NetSuite in 1998 with the help of Oracle Corp. Chief Executive Larry Ellison. Nelson is also a former Oracle employee. Ellison continues to own a majority of NetSuite's common stock. In total, NetSuite netted $161.9 million from the IPO, including $13.8 million from the underwriters' overallotment option. The shareholders raised about $9.5 million from the option. NetSuite has not yet turned a profit. Through the first nine months of this year, the company booked $20.6 million in losses on revenue of $76.8 million. Credit Suisse Securities served as the IPO's sole book-running manager. W.R. Hambrecht acted as co-manager.
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