NetSuite Prices At Even Higher Premium (N, ORCL)

NetSuite (NYSE: N) has priced its IPO, and the price has been raised yet again.  The company is selling 6,200,000 shares at a price of $26.00.  The lead underwriter is Credit Suisse and W.R. Hambrecht is listed as the only co-manager.  Underwriters have an overallotment option of some 930,000 shares. 

• The first range was listed as $13 to $16…
• Then $16 to $19….
• Then $19 to $22….
• Now $26 is the formal pricing…

This is a Larry Ellison funded company, so it may get to ride high above and beyond its own merits since Oracle (NASDAQ:ORCL) blew the doors off the numbers and traded up over 6% in after-hours trading. This is being touted as one of the more successful OpenIPO auction formats, and you can find more information on that here. 

Please note…. Many brokerage and research firms have tended to avoid participating in these structures as it is deemed competition the traditional underwriting, so one thing to consider is that some broker/research companies that might have covered this may not cover it down the road.  But that also means that if the firms aren’t in the underwriting syndicate that they could also jump in with coverage almost immediately.  We won’t know that until later.

We cover and preview many pending IPO’s, back door plays in IPO’s, spin-offs, and more for our once or twice weekly open email distribution list.

Investment banking departments are starting to wind down already for the rest of the year, so as far as hot IPO’s are concerned this could be 2007’s last key IPO.

Jon C. Ogg
December 19, 2007

Jon Ogg can be reached at [email protected]; he produces the SPECIAL SITUATION newsletter and he does not own securities in the companies he covers.