RPT-IPO VIEW-Year-end U.S. IPOs hope to light a spark

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By Lilla Zuill

NEW YORK, Dec 16 (Reuters) - Two of this week's U.S. initial public offerings hope to spark investor interest; one with celebrity appeal, while the other quite literally promises a brighter future.

This week's red carpet debut is software maker NetSuite, an IPO being brought to market by billionaire Larry Ellison, a star in software circles for founding Oracle Corp (ORCL.O).

The second deal, from Orion Energy Systems, a manufacturer of efficient lighting systems, has a lower profile but analysts say it is attracting interest.

NetSuite, the last deal on the 2007 IPO calendar, and a pioneer in the hot "on demand" software sector, is expected to price its offering on Wednesday.

The company, which has yet to make a profit, has filed to raise up to $99 million with a modified auction-format IPO led by Credit Suisse (CSGN.VX).

The maker of Web-accessed business management software for small and mid-sized companies posted a third-quarter loss of $1.8 million on revenue of $28 million, compared with a loss of $9.2 million on revenue of about $18 million a year earlier.

Ellison, who ranked as the fourth-wealthiest American according to Forbes 2006 list, has amassed a fortune worth about $19.5 billion, largely through his stake in Oracle, the world's No. 3 software maker, where he is the largest shareholder.

He is also NetSuite's largest shareholder -- although he has limited his control of the 10-year old company to avoid conflicts with his Oracle role -- which may draw in investors who saw the riches made by early Oracle shareholders. A $10,000 investment in Oracle's 1986 IPO would now be worth in excess of $4.5 million.

EFFICIENT LIGHTING

Orion, a Plymouth, Wisconsin-based company, counts Coca-Cola (KO.N) and Kraft (KFT.N) as customers, and says its fluorescent light fixtures can improve light quality while trimming energy use by up to half.

Coca-Cola alone bought enough Orion light fixtures to account for 20 percent of the company's revenue in the six-month period ended Sept. 30, expanding sales by 75 percent to $35 million. Net income for the period was $1.8 million, compared with $5,000 during the same period a year ago.

"The need for what they provide is clear but the (deal) seems a little high priced," said Francis Gaskins, president of research firm IPOdesktop.com, noting that Orion's price-to-earnings ratio was 75, based on annualized earnings through Sept. 30.

Competitors such as Johnson Controls (JCI.N) and Honeywell International (HON.N), although much bigger and in a wider range of business lines than Orion, are cheaper with price-to-earnings ratios in the high teens.

Gaskins said Orion's 16 patents "somewhat" protect it from competition.