Update: NetSuite raises IPO price range

NetSuite has raised the estimated price range for its IPO (initial public offering) to $16 to $19, from the original $13 to $16.

The company made the disclosure in a document filed Tuesday with the U.S. Securities and Exchange Commission.

The company is following the lead of Google in conducting an online, auction-style IPO, instead of having underwriters set the price. The auction opened on Dec. 10 and NetSuite said at the time it expects the stock's price to be finalized on Wednesday.

NetSuite, which sells a line of hosted business software, is putting up 6.2 million shares of common stock. NetSuite expects to net about $98.4 million after expenses from the IPO, it said in the filing. That estimate assumes the stock will price at $17.50.

Scott Sweet, managing director of IPOBoutique.com , said he was "not surprised" by NetSuite's move.

Sweet, whose firm tracks the IPO market and offers advice to investors, said he is hearing a "very strong buzz" around the NetSuite auction.

"I still expect that it will likely price above the revised range, based on demand and the potential for NetSuite's ERP product," he said.

NetSuite has said it plans to use money generated by the IPO to pay off an $8 million balance on a line of credit with Tako Ventures, an entity controlled by Oracle CEO Larry Ellison, and to possibly make acquisitions.

Ellison controls about 60 percent of NetSuite's outstanding stock, which works out to about 31.9 million shares. He plans to put those shares into a "lockbox" limited-liability company, a move that would "effectively eliminate" his voting control and thereby avoid potential conflicts of interest, NetSuite has said.