Jive Pushes Ahead With IPO, Seeking to Raise $117 Million

Jive Software Inc., the maker of social-networking software for businesses, pushed ahead with plans for an initial public offering, seeking to raise as much as $117 million.

The Palo Alto, California-based company will sell 8.33 million shares, with stockholders offering an additional 3.37 million, according to a filing today. The price will be $8 to $10. That would put Jive’s valuation at as much as $573 million.

Jive is counting on IPO investors still having an appetite for an unprofitable Internet company, even as many recent IPOs see their stocks get battered. Shares of Groupon Inc., an online-coupon provider that went public earlier this month, have tumbled below their IPO price, though the stock has regained some ground in the past two days.

Jive, founded in 2001, builds social-networking software for business customers, aiming to apply Facebook-style tools to help workers collaborate. The company’s losses have grown this year as it steps up spending on research, product development, marketing and overhead. Its net loss was $38.1 million in the first nine months of the year, compared with $20.9 million in the year-earlier period.

Big Rivals

Jive faces competition from established business-software makers, including Microsoft Corp. (MSFT), International Business Machines Corp. (IBM) and Salesforce.com Inc. (CRM) Earlier today, Salesforce introduced software that helps companies create online marketing campaigns -- and tightens ties between its social-media tools and flagship customer-management software.

About $20 million from the IPO proceeds will be used to pay down loans, the company said. The shares will list on the Nasdaq Stock Market under the ticker symbol JIVE, according to the filing. Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) are leading the offering.

Sequoia Capital is the biggest Jive shareholder, with a stake of about 35 percent, followed by Kleiner Perkins Caufield & Byers, which owns 14 percent, according to the filing. Co- founders Matthew Tucker and Bill Lynch own about 14 percent each, while Chief Executive Officer Anthony Zingale controls 7 percent, the filing showed.

Facebook Inc., the world’s largest social-networking service, is making preparations for its own IPO, a person with knowledge of the matter said this week. The company is said to be considering raising about $10 billion in a deal that would value it at more than $100 billion.

To contact the reporters on this story: Nick Turner in San Francisco at nturner7@bloomberg.net

To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net

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