Jive Software: A Deeper Look at the Company’s IPO

In a busy week for the IPO market. Jive Software (NASDAQ:JIVE) debuted yesterday and shares shot up. The social enterprise and collaboration software company priced on Monday and started trading yesterday on the NASDAQ (NASDAQ:NDAQ).

Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) will serve as the company’s underwriters while additional help will come from Citigroup (NYSE:C), UBS (NYSE:UBS), BMO Capital Markets (NYSE:BMO) and Wells Fargo (NYSE:WFC).

Since August 2010, Jive has received $57 million in funding after three rounds thanks to venture capital investors Sequoia Capital and Kleiner Perkins.

The IPO comes at a time when there’s been an increased interest in enterprise software companies that operate in the cloud. Earlier this month, SAP (NYSE:SAP) bought cloud-based software company SuccessFactors for $3.4 billion and in October for $1.4 billion, Oracle (NASDAQ:ORCL) acquired RightNow.

In its S1 filing, Jive reported that for the six months ended in June, 59% of sales came from cloud-based software. It is also likely the company could become a cloud-based acquisition target.

Here’s how Jive shares are trading now:

Jive Software, Inc. (NASDAQ:JIVE): JIVE shares recently traded at $14.68, down $0.37, or 2.46%. They have traded in a 52-week range of $14.50 to $16.50. Volume today was 631,892 shares versus a 3-month average volume of 14,994,400 shares. Get the most recent company news and stock data here >>