Jive Beats Own Target With IPO

Jive Software Inc. (NASDAQ:JIVE) raised $161.3 million in its initial public offering, 38 percent more than first sought after pricing the shares above the marketed range.

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The company, which makes social-networking software for businesses, sold 13.4 million shares at $12 apiece yesterday. It had planned to offer 11.7 million for $8 to $10 each, according to regulatory filings. The stock begins trading today on the Nasdaq under the symbol JIVE.

Jive is one of 11 companies with initial public offerings this week. Its software allows employees to collaborate on projects and communicate with customers. Revenue at the company, which counts NetApp Inc. (NASDAQ:NTAP), Nike (NYSE:NKE), and Hewlett-Packard (NYSE:HPQ) among its clients, has surged in the past three years.

Jive’s net losses widened to $38.1 million in the first nine months of 2011, from $20.9 million a year earlier, while sales climbed 73 percent to $54.8 million. The top end of the originally proposed IPO range valued Jive at $573 million, or 8.3 times sales in the year through September 30. Microsoft (NASDAQ:MSFT) and IBM (NYSE:IBM), both named as competitors in Jive’s IPO filing, had a ratio of 3 and 2.1 for the year through September, respectively.

About $20 billion from the IPO will be used to pay down loans, according to regulatory filings. Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) managed Jive’s IPO.

Jive planned to sell 8.33 million shares, with stockholders offering an additional 3.37 million. Co-founders Matthew Tucker and Bill Lynch planned to trim their stakes to 11 percent, from about 14 percent. Chief Executive Officer Anthony Zingale planned to trim his stake to 5.4 percent from about 7 percent.

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