Heading into its first day as a public company, Jive was riding high—it did much better than expected with underwriters and soared to a strong $15.12 share price when it opened

1. Jive Makes Public Bow On Nasdaq - Loot - Portfolio.com Page 1 of 4
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LOOT
(HTTP://WWW.PORTFOLIO.COM/VIEWS/BLOGS/MONEY
-HUNT/)
by Kent Bernhard, Jr.
Main Startup Lender Kabbage Takes Out Loan of Its Own (http://www.portfolio.com/views/blogs/money
(http://www.portfolio.com/views/blogs/money
-hunt/)
Dec 13 2011 4:29pm EDT
Jive's First Day as Public Company a Rocky Ride
Jive CEO Tony Zingale rang the bell at the Nasdaq this morning as his company
went public.
Image: Jive
H
eading into its first day as a public company, Jive was
riding high—it did much better than expected with
underwriters and soared to a strong $15.12 share price when it
opened. But when the Nasdaq closed this afternoon, Jive's
shares had dipped below its opening price: not the best way to
kick off a debut with regular investors.
The company's stock, trading on the Nasdaq under the symbol
JIVE, ended the day at a share price of $15.05. The good news
is it far surpassed the $8-$10 a share the business social
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2. Jive Makes Public Bow On Nasdaq - Loot - Portfolio.com Page 2 of 4
networking software company
(http://www.portfolio.com/views/blogs/entrepreneurship/2010/07/26/jive
-started-as-a-small-business-but-is-now-tapping-into-big-bucks-
and-big-opportunity/) initially sought to raise, and it closed 25
percent higher than the $12 per share at its debut. The
company's market capitalization is about $870 million after its
first day of trading, prompting CEO Tony Zingale to call the IPO
a validation of Jive's model of bringing social tools to the
enterprise.
But the bad news is stock climbed as high as $16.50 a share
before it slipped back and closed below its early surge. Trading
volume was about 14.9 million.
Jive, which has been backed by venture capital powerhouses
Kleiner Perkins Caufield & Byers and Sequoia Capital, raised
$161.3 million in its initial public offering to underwriters Monday.
The company sold (http://www.businessweek.com/news/2011-12-
13/jive-raises-161-3-million-in-ipo-after-pricing-above-range.html)
13.4 million shares at $12 each to underwriters.
Jive makes business software that applies social networking
technology to foster greater communication and collaboration
between a company and its customers and partners.
In the first nine months of the year, Jive's revenue increased 73
percent to $55 million, but it has had a history of losses and
posted a net loss of $38.1 million in that same period, according
to the Silicon Valley/San Jose Business Journal.
(http://www.bizjournals.com/sanjose/news/2011/12/12/jive-
software-ipo-beats-price-share.html)
The question for Jive now that it has raised big money on Wall
Street is exactly what it will do with proceeds from the sale, said
Manoj George, a former executive with software giant Red Hat
and now chief executive of Nair & Co., which facilitates
companies' overseas dealings.
“They’re numbers have to be on track,” he said. “Then what do
you do with the cash and what do you do with the currency of
stock?”
He said the market can be unforgiving if the company doesn't
invest the money raised wisely, and if it doesn't meet growth
expectations.
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The business software company is the first in a lineup
(http://www.portfolio.com/business-news/2011/12/12/zynga-jive-
lead-a-busy-ipo-week) of as many as 11 companies planning to
go public this week, the most in one week since 2007. Several
high-profile companies have been taking a public route of late,
but it hasn't been the easiest journey. Groupon went public in a
dazzling debut
(http://dealbook.nytimes.com/2011/11/22/groupons-i-p-o-pop-now-
deflated/) in early November before its stock plummeted several
weeks later.
Among the companies expected to go public this week is social
gaming giant Zynga, which is likely to represent the largest tech
IPO since Google went public in 2004.
Get more business intelligence from Portfolio.com:
A Hashtag How-To:
(http://www.portfolio.com/resources/2011/12/13/ask-shama-
hashtags-what-are-they-good-for) Why does everyone on
Twitter use the pound sign all the time? Our marketing expert
Shama Kabani explains.
Costume Designer Gets Mass Opportunity:
(http://www.portfolio.com/views/blogs/executive-
style/2011/12/12/dragon-tattoo-costume-designer-gets-mass-
opportunity) Will fans of The Girl With a Dragon Tattoo dress
like the star Lisbeth Salander when the movie debuts?
Thanks to an enterprising costume designer’s deal with H&M,
it's an option.
Happy IPO Holidays: (http://www.portfolio.com/business-
news/2011/12/12/zynga-jive-lead-a-busy-ipo-week) Zynga and
Jive Software illustrate different aspects of the social-media
revolution. This week, they're among the headliners for what
could be the biggest initial public offering roundup since 2007.
Kent Bernhard Jr. is News Editor of Portfolio.com
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