More than 13 companies have withdrawn their initial public offerings (IPOs) in the face of the recent tumult that has been reverberating throughout the U.S. stock market. In spite of the seemingly unfavorable climate for IPOs, software firm Jive Software Inc., a developer of programming for social networks, is hoping to sidestep its competitors by announcing its first sale of stocks to the public, according to Bloomberg.
The company is entering a fiercely competitive market, the news source reports. Jive will be contending with more than 100 different software developers, in addition to Salesforce.com, a major rival, and promising new industry contender Lithium.
The market for social networking software is predicted to be immensely lucrative, with an estimate that it will surge by 60 percent from its 2010 total and reach a value of $1 billion in 2012.
Despite being a fairly young company, founded only a decade ago, Jive has been fairly successful so far, with an estimated 2010 revenue of about $70 million. Its IPO may end up being worth over $1 billion, and a 10 to 20 percent stake in the business may be up for grabs.
The Committee on Capital Markets Regulation announced on August 18 that the U.S share of the global market for IPOs has recently been increasing from previous lows.