On-demand business software vendor NetSuite has confirmed it is on target for an IPO which it hopes will see the company valued at $1bn (£600m) in the second quarter of 2007.

Speaking at a NetSuite user event in London yesterday cheif executive, Zack Nelson said: “We are on target to announce an IPO in Q2 next year, providing the market conditions are right.”

Given that Oracle chief Larry Ellison is the majority shareholder in the company – over 60 per cent – his ongoing involvement in NetSuite sits uneasily with Oracle’s own Siebel based on demand offerings.

Nelson dismissed such claims: “Larry’s focus is Oracle and he’s doesn’t need the money. We don’t really compete with Oracle because our growth is in the mid-market.”

He added: “I think it is an incredibly positive thing to have the fifth richest man in the US on you side.”

The money raised by the IPO will allow NetSuite to further expand an international presence which has already seen its hosted customer relationship mananegment and e-commerce software offerings grow in regions such as Australia, Japan, Singapore and the UK.