Centerprise Withdraws IPO Bid
Centerprise had planned an IPO to buy and consolidate eight CPA firms and three insurance brokerages with the proceeds, and be the first to successfully take a CPA firm-based consulting organization public.
The IPO, underwritten by Merrill Lynch, was set for 10.5 million shares, set to go on the market at $11.50 - $13.50 per share, for a total capitalization of over $140 million.
Speculation about the reasons for the withdrawal indicate that investors are too enamored with Internet stocks at this point to get a favorable reception on the stock market for a service oriented company.
Centerprise will regroup, research their options, and continue to explore alternatives to accomplish the consolidation in a profitable manner.