Shares of Jive Software Inc., a maker of social-networking software for businesses, closed up more than 25 percent on Tuesday in the stock's first day of trading after an IPO.

Jive was up as much as 38 percent during the trading day on the NASDAQ Stock Market, reaching an intraday high of $16.50. The company, based in Palo Alto, Ca., said in a statement it sold 13.4 million shares at $12 each after originally planning to sell 11.7 million shares at $8 to $10 each. The sale valued Jive at $678.6 million as the company took in $160.8 million in cash.

According to SEC filing statements, Jive -- which trades under the symbol JIVE -- will use about $20 million of its take to reduce debt, and put the rest into operating expenses and growing the company. Jive lost $38.1 million in the first three quarters of 2011, but sales jumped more than 70 percent from the comparative period in 2010.

Jive CEO Tony Zingale told the Mercury News the successful IPO validates so many things we've been working on, ever since Matt and Bill started the company. The social business market is here.

The company was founded in Iowa in 2001 by Matt Tucker and Bill Lynch, college classmates. The likes of Intel and News Corp. are among Jive's customers. The company creates Web sites and other tools for businesses to find better means of sharing social information with stakeholders.

Jive is one of a dozen companies expected to have IPOs this week in U.S. markets -- the busiest week since Nov. 12, 2007, according to