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Hot IPOs: Jive Software, Michael Kors

NEW YORK ( TheStreet -- December is shaping up to be a busy month for new offerings with 12 companies slated to go public this week alone.

Jive Software (JIVE - Get Report) is expected to price its share sale Monday night. The Palo Alto, Calif.-based developer of social business applications is looking to raise $105.3 million, selling 11.7 million shares with a pricing range of $8-$11 per share.

The company could get some extra cachet from the spate of M&A activity in the sector of late. Recent deals include RightNow (RNOW) agreeing to be acquired by Oracle (ORCL - Get Report) for $1.5 billion and Success Factors (SFSF) getting bought by SAP (SAP - Get Report) for $3.4 billion.

At the same time, Jive competes with some heavyweights, including Microsoft (MSFT) and IBM (IBM), which could hurt it.

The company's main product taps into social media monitoring so that companies know what is being said about them online. Jive also markets itself to companies looking to engage in social marketing or turning customers into brand advocates.

For the six months ended June 30, Jive reported a loss of $30.6 million on revenue of $34 million, which compares to a loss of $13.3 million on revenue of $19.2 million in the same period a year earlier, according to its S-1 filing in late August.

IPO Desktop President Francis Gaskins thinks the stock will pop at its launch and suggests investors get some if they can.

Another one of this week's more eagerly anticipated offerings is Michael Kors (KORS - Get Report).

The company is doing the opposite of a recent fashion IPO, Prada, which went public in Hong Kong. Kors is based in Hong Kong, but the fashion house is opting to list its new stock in the United States.

Kors is looking to raise $750.6 million through the sale of 41.7 million shares for between $17 and $19 each.

IPO Desktop's Gaskins believes the stock will move up in the after-market and is best compared to Coach (COH - Get Report), the aspirational handbag company.

Michael Kors launched his namesake brand 30 years ago as an American luxury sportswear house. He has expanded that to footwear and apparel with a presence in 74 countries. The accessories including handbags, jewelry and watches now account for the majority of the wholesale and retail sales.

Total revenue in fiscal 2011 was $803 million vs. $508 million in 2010 -- a 58% increase. Gaskins believes Kors has better growth potential than Coach since it is only in 203 stores and could increase to 600. The price-to-tangible book value is about the same at 12X.

Kors was already well known in the fashion world, but shot to household fame as a judge in the reality show Project Runway. The additional exposure on the television show has boosted his name recognition with mainstream American women.

The majority of the current sales come from North America, but brand awareness in building in Europe and Asia. The company is in high-end department stores such as Neiman Marcus, Nordstroms (JWN) and Bloomingdale's (M).

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-- Written by Debra Borchardt in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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COH $29.85 1.32%
JIVE $4.61 -0.43%
KORS $44.92 0.92%
ORCL $36.90 0.41%
SAP $66.57 0.67%


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