All the hullabaloo about NetSuite’s IPO

The press release came ran something like this: NetSuite Inc., a vendor of on-demand, integrated business management application suites that provide ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) and e-commerce functionality for small and medium-sized businesses and divisions of large businesses, today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission relating to the proposed initial public offering of its common stock.

Credit Suisse Securities (USA) LLC will act as sole book-running manager for the offering. In addition, WR Hambrecht + Co will act as co-manager of the offering. The number of shares to be offered and the price range for the offering have not yet been determined. Copies of the preliminary prospectus for the offering, when available, may be obtained from Credit Suisse Securities (USA) LLC, etc.

But then came the flurry of commentary and reactions to the whole Larry Ellison connection thing from the blogosphere and mainstream media, not to mention the red ink of the balance sheet.

According to NetSuite numbers required for public release upon announcing an IPO, For the quarter ended March 31, the company reported net losses of $3.7 million on sales of $23.2 million. In 2006, NetSuite generated $67.2 million in revenues and net losses of $23.4 million.

Even more catching to the collective imagination, though, and thus reported everywhere was that Oracle Corporation CEO Ellison “controls about 74 percent of the stock in the San Mateo company through Tako Ventures LLC. Netsuite said it plans to use some of the proceeds to repay a $7.5 million balance on a secured line of credit to Tako.”

NetSuite will be selling ten percent of its shares in the IPO and hopes to garner $75 million.