Livin’ In Larry Land: NetSuite Prices High, Oracle Soars

Wow, Larry Ellison is having a nice Thursday, isn’t he?

NetSuite (N), a provider of on demand business software, Thursday priced an initial public offering of 6.2 million shares at $26. There will be 59.5 million shares outstanding after the offering, giving the company an initial market cap of $1.5 billion. Of the total, about 67% is controlled by Ellison and trusts for his children; the stake is worth about $1 billion. The price of the deal is dramatically higher than the underwriters estimate Tuesday of $16-$19 a share, which itself was up from the previous range of $13-$16.

Meanwhile, Ellison’s other company - Oracle (ORCL) - last night reported blow-out results for the fiscal first quarter ended November. Oracle shares Thursday morning are trading sharply higher, up $1.91, or 9.2%, to $22.67. Ellison as of December 18 held 1.172 billion Oracle shares, which today are worth $26.56 billion, or about $3.28 billion more than at Wednesday’s close. That brings Ellison’s Thursday morning net worth increase to well over $4 billion.

Ho, ho, ho.

Comments

[Michael Davey:]

I wish I was paying more attention to the date for N. Obv. now that Larry picked this date to coincide w ORCL release - how did i miss that set-up?

2007 Dec 20 02:24 PM

[Michael Davey:]

(set-up meaning for ORCL into eps-release - N was crapshoot either way, obv).

2007 Dec 20 02:31 PM