NetSuite closes in on IPO

SaaS firms follow Salesforce.com example

Another on-demand software firm moved closer to going public today after NetSuite announced more details of its imminent initial public offering (IPO). Floatations in the sector should ensure healthy choice for buyers in 2008.

Salesforce.com’s 2004 IPO raised expectations as the firm has bloated to a valuation of over $6bn, and applications suite provider NetSuite hopes to follow with similar success.

NetSuite named its price range, chose the stock ticker symbol ‘N’, and said it hoped to raise about $99m. It also disclosed that it plans to spend some of the cash raised on building a second datacentre, a move that could help reassure customers and prospects of its ability to withstand service interruptions.

Another software-as-a-service company, talent management specialist SuccessFactors, floated last month.