Jive's First Day as Public Company a Rocky Ride


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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

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Jive's First Day as Public Company a Rocky Ride

  1. 1. Jive Makes Public Bow On Nasdaq - Loot - Portfolio.com Page 1 of 4 (/) 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 Jives 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, Jives shares had dipped below its opening price: not the best way to kick off a debut with regular investors. The companys 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 socialhttp://www.portfolio.com/views/blogs/money-hunt/2011/12/13/jive-makes-public-bow-on-... 1/15/2012
  2. 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 companys market capitalization is about $870 million after its first day of trading, prompting CEO Tony Zingale to call the IPO a validation of Jives 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, Jives 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 doesnt invest the money raised wisely, and if it doesnt meet growth expectations.http://www.portfolio.com/views/blogs/money-hunt/2011/12/13/jive-makes-public-bow-on-... 1/15/2012
  3. 3. Jive Makes Public Bow On Nasdaq - Loot - Portfolio.com Page 3 of 4 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 hasnt 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, its 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, theyre among the headliners for what could be the biggest initial public offering roundup since 2007. Kent Bernhard Jr. is News Editor of Portfolio.com Commentshttp://www.portfolio.com/views/blogs/money-hunt/2011/12/13/jive-makes-public-bow-on-... 1/15/2012
  4. 4. Jive Makes Public Bow On Nasdaq - Loot - Portfolio.com Page 4 of 4 Comment using... Facebook social plugin Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement and Privacy Policy (http://acbj.com/privacy.htm (http://acbj.com/privacy.html#VI4). Portfolio © 2012 American City Business Journals. All rights reserved. The material on this site ma otherwise used, except with the prior written permission of American City Business Journals. Quotes delayed 15 minutes for NASDAQ. 20 minutes for NYSE and AMEX. Market Data provided by Interactive Data. Terms & Conditions. implemented by Interactive Data Managed Solutions (http://www.interactivedata.com/idms/). Company fundamental data provided by Hemscott. Ec provided by Comtex. Sec Filings data provided by Edgars. The Wall Street Horizon National Consumer Interest Rate Survey. ©2012 Wall Street PMMS Mortgage Data ©2012 Freddie Mac (http://www.freddiemac.com). Mortgage averages are for conforming mortgages with 20% down.http://www.portfolio.com/views/blogs/money-hunt/2011/12/13/jive-makes-public-bow-on-... 1/15/2012