NetSuite on Wednesday boosted the estimated price range for its IPO (initial public offering) for the second time in just two days, according to a filing with the U.S. Securities and Exchange Commission. The range now stands at US$19 to $22, after NetSuite raised it to $16 to $19 on Tuesday.
The hosted business software company initially set the range at $13 to $16.
NetSuite is running the IPO as an online auction, in the same fashion of search giant Google, rather than following the traditional route of having underwriters set the price.The stock is expected to be priced after the stock market's close Wednesday. It will be listed on the New York Stock Exchange under the symbol "N."
NetSuite, which sells a line of hosted business software, is putting up 6.2 million shares of common stock. The company said Wednesday it believes it will net about $115.9 million from the IPO after expenses.
NetSuite has said it plans to use proceeds from its IPO to pay off an $8 million balance on a line of credit with Tako Ventures, an entity controlled by Oracle CEO Larry Ellison, and to possibly make acquisitions.
Ellison controls about 60 percent of NetSuite's outstanding stock -- some 31.9 million shares.
NetSuite said Wednesday that Ellison has now completed the transfer of those shares into a holding company, NetSuite Restricted Holdings. The move is meant to "effectively eliminate" Ellison's voting power and avoid potential conflicts of interests, NetSuite said.
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