NetSuite IPO Prices Surge

Following a shaky start, shares in the business software firm are trading up.

After setting share prices by Dutch auction, NetSuite's initial public offering this week raised more $161 million in first-day trading with prices surging by nearly 40 percent.

The San Mateo, Calif-based business software firm, which is majority owned by Oracle CEO Larry Ellison, issued 6.2 million shares on Wednesday at $26 per share. By Thursday's closing, shares had climbed to $35.50, after falling by 3.6 percent earlier in the day.

Last week, the company began auctioning off common shares, expecting to set an IPO price between $13 to $16 per share.

NetSuite, which ranked No. 410 on this year's Inc.5,000 list of the nation's fastest-growing private companies, posted a net loss of $35.7 million in 2006 and has yet to turn a profit.