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Jive Shares Soar on Market Debut

Reuters – Jive Software shares jumped 38 percent in their market debut, a day after strong demand helped the company sell more shares at a price higher than it expected.

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)