NetSuite announces flotation plan

On-demand CRM and ERP vendor NetSuite has formalised its plans to IPO, filing documentation with the US Securities and Exchange Commission (SEC) today.

The announcement follows two years of speculation during which the company spoke openly of its intentions for a flotation that would value the company at $1bn, originally slated for 2006, although a number of proposed dates have come and gone.

Credit Suisse has been appointed to manage the IPO along with WR Hambrecht & Co. In keeping with SEC requirements, NetSuite CEO Zach Nelson declined to comment on the current valuation of the company, the timeframe of the IPO or the amount of common stock being made available. However, Reuters reports the IPO may raise $75m.

In April 2006, Evan Goldberg chairman, co-founder and CTO of NetSuite, said the company was gearing up for flotation in late 2006 or early 2007.

Speaking exclusively to silicon.com at the time, Goldberg said: "We're looking to IPO late this year or early next year. It's the next major milestone for us."

He added: "We've been preparing the company for some time and we're in very good shape."

The money raised from the IPO is expected to fund expansion into new geographies.

NetSuite was founded in 1998 by Goldberg and Nelson, both formerly of Oracle, around the same time as on-demand rivals RightNow Technologies and fellow Oracle alumnus Marc Benioff's Salesforce.com.

NetSuite's majority shareholder is currently Oracle CEO Larry Ellison.