UPDATE 2-NetSuite Inc IPO raises $161 mln, well above range

(Adds analyst comment, detail, byline)

By Lilla Zuill

NEW YORK, Dec 19 (Reuters) - NetSuite Inc, a software company controlled by Oracle (ORCL.O: Quote, Profile, Research, Stock Buzz) Chief Executive Larry Ellison, on Wednesday raised $161 million with an initial public offering that priced well above expectations.

About 6.2 million shares sold for $26 apiece, according to an underwriter.

That price was double the low end of an initial forecast range of $13 to $16, and $4 a share higher than the top of the final forecast of $19 to $22 on Wednesday.

Underwriters, led by Credit Suisse and W.R. Hambrecht as co-manager, have the option to purchase an additional 930,000 shares to cover overallotments.

If the "greenshoe" option is exercised, NetSuite will have raised about $185 million. Its market capitalization is about $1.5 billion, based on its IPO price. About 10 percent of the company's outstanding shares are being floated in the public offering.

CELEBRITY CLOUT

NetSuite, which will remain majority-owned by Ellison after the offering, plans to use the proceeds to pay down a line of credit from an Ellison-controlled company, which had a balance of $8 million as of Sept. 30, and for capital expenditures, including a second data center.