Netsuite, the business management software-as-a-service (SaaS) vendor, is one step nearer to going public.

It is filing S-1 papers with the US Securities and Exchange Commission (SEC) yersterday, based on revenues of about $70m.

Initial reports claim the company is expecting to raise $75m in an initial public offering (IPO) of common stock, as opposed to about $100m (£49.8m), as reported earlier this year, in exchange for 10% of the company.

It has already raised over $100m to date.

The San Mateo-based SaaS player, 60% owned by Larry Ellison, chose Credit Suisse and WR Hambrecht to underwrite the IPO.

The filing did not reveal how many shares the on-demand vendor planned to sell or the expected price.

The company, which was started in 1998 by two former Oracle executives, plans to use the money for working capital, to pay the balance of a line of credit and possibly to acquire other businesses or technologies, the company said in the filing.

NetSuite targets its hosted customer relationship management (CRM) and enterprise resource planning (ERP) software at small and medium-size businesses, hasn't yet turned a profit. It reported revenue of $67.2 million and a net loss of $23.4 million for 2006.

The company competes with the likes Salesforce.com, Microsoft, SAP, Sage and Intuit. But it also competes with Oracle, even though Oracle's founder and chief Executive Larry Ellison, has a majority share of NetSuite, individually and through his family members and an investment entity.

NetSuite notes that Ellison will continue to have control over most matters that require stockholder approval, such as the appointment of the majority of directors of the company and potential acquisitions. His interests could differ from other stockholders, NetSuite noted.

The SEC filing includes a long list of other risks to NetSuite's business in the future, including the likelihood of increased competition as more companies will probably enter the business. NetSuite will have to continue to convince medium-size businesses to use SaaS rather than buy software outright and the company will have to upsell to those customers in order to grow the business, it said in the filing.

NetSuite's success in the future also is dependant on companies that it relies on, including Oracle, which supplies database software that NetSuite uses, as well as telecommunications operators that deliver the service to end customers, the company said.

Additional reporting by Nancy Gohring