Jive gets a bump in its pricing:
Jive Software Prices IPO At $12/Share
By Lynn Cowan
Of DOW JONES NEWSWIRES
December 12, 2011, 6:57 P.M. ET
Jive Software Inc. sold more stock at a higher price than originally expected in its initial public offering Monday night.
The company sold 13.4 million shares, up from the 11.7 million shares it had planned, and priced them at $12 apiece, above its expected $8 to $10 range. The company's stock is expected to begin trading Tuesday on the Nasdaq.
Jive Software kicks off a busy week in the U.S. IPO market, with a total of 11 deals lined up to debut. If all make it out, it will be the most active week since December 2007, when 13 launched. It is also the final week for IPO pricings this year; the market shuts down for a holiday hiatus after this until about mid-January.
Jive had been expected to do well, with a well-attended road show and enough investor interest early on that the company moved up its pricing by one day. Other deals that are expected to fare well with investors this week are Michael Kors Holdings Ltd. and Zynga Inc.
Jive Software makes business software that allows communication and collaboration between a company's employees and its customers and partners. Its current software platform, known as Jive Engage, was introduced in 2007 and is now used by 657 customers, including Hewlett-Packard Co. (HPQ), SAP AG (SAP), and UBS AG (UBS).
Total revenue, which is driven by customer subscriptions to its software, increased 73% to $55 million in the first nine months of the year, compared to the same period in 2010, as the company added more customers and increased its average transaction size. The company has a history of losses and warns that it doesn't expect to be profitable in "the foreseeable future," thanks to increased operating and capital expenditures.
Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) managed Jive's offering.
-By Lynn Cowan; 301-270-0323; lynn.cowan@dowjones.com
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