Jive Sees Success in Smaller IPO

Some of the hopeful expectations about the initial public offering market opening up in the wake of the recent Groupon IPO have been borne out to an extent with the somewhat smaller offering by Jive Software on Tuesday.

The Wall Street Journal reports that Jive, a producer of social networking tools used by businesses, was initially expected to price this week at between $8 and $10 per share, giving the company a valuation between $458 million and $573 million.

With market demand high, however, Jive followed Groupon’s example and unexpectedly raised its offering price to $12 per share, giving the company a market valuation of more than $687 million.

Even at this higher price, however, the company saw so much interest that its underwriters – Goldman Sachs and Morgan Stanley – ended up selling 2.7 million more shares than initially planned, bringing the total to 13.4 million.

The stock performed well on its first day, closing up 25.42 percent at $15.05 per share and holding largely steady throughout the day. This reflects a slight improvement over recent offerings like Groupon, which often saw a drop after initial trading, but over the course of the year essentially all newly public technology companies have experienced substantial drops.

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