Netsuite’s IPO seems to be going all guns blazing. The modified Dutch auction (similar to that employed by Google during their IPO) has already seen the estimated listing price raised to between USD19-22. The interesting thing is that the price estimate values Netsuite at 10.9 versus Salesforce’s 9.2 most recent price-to-sales valuation.
That puts the Netsuite market cap at around USD1.2 billion for a company yet to turn a profit. Compare that to Salesforce, which is profitable, and has a market cap of about US$7 billion.
Bubble anyone?
Ben Kepes is an analyst, an entrepreneur, a commentator and a business adviser. His business interests include a diverse range of industries from manufacturing to property to technology. As a technology commentator he has a broad presence both in the traditional media and extensively online. Ben covers the convergance of technology, mobile, ubiquity and agility, all enabled by the Cloud. His areas of interest extend to enterprise software, software integration, financial/accounting software, platforms and infrastructure as well as articulating technology simply for everyday users. 