Jive, which provides social networking software for businesses and counts Hewlett-Packard, SAP, T-Mobile and UBS as clients, sold 13.4 million shares at $12 each.
The company had expected to sell 11.7 million shares for between $8 and $10 a share.
On Monday, sources told Thomson Reuters IFR that Jive’s offering was “oversubscribed” and was likely to price above the range.
Recent M&As in the “software-as-a-service” sector, including acquisitions by SAP (SAPG.DE), IBM (IBM.N) and Oracle (ORCL.O), have boosted valuations of companies like Jive that provide on-demand software to the enterprise market.
At the IPO price the company, backed by Californian venture capital firm Sequoia Capital, has a market value of about $700 million.
Morgan Stanley and Goldman Sachs were the lead underwriters on the offering.
Jive’s shares were trading at $15.30 on Tuesday on Nasdaq, after touching a high of $16.50 earlier in the session.
(Reporting by Siddharth Cavale and Jochelle Mendonca in Bangalore; Editing by Joyjeet Das)
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