KPMG Consulting Enters Uncertain Market

An oversubscribed initial public offering of KPMG Consulting (KCIN) was expected to be overshadowed by a share slump in one of its major shareholders. But the IPO, launched today, was one of the strongest IPO's in a year.

Shares were priced at $18.00, opened at $20.44 and shot up to $24+ on fairly heavy volume on the first day of trading.

Analysts expected the trading to be negatively affected by Cisco Systems, which owns 20% of the consultancy, who saw its shares fall by 13% earlier this week after posting results below expectations. But the market responded differently, embracing the launch of the first - and likely not the last - accounting related consulting offering.

KPMG Consulting's Nasdaq flotation comes five months after receiving regulatory approval for the move, due to uncertainty over market conditions.

Chief underwriter Morgan Stanley Dean Witter sold 117m shares in KPMG Consulting (KCIN) at the top price of $18, valuing the firm at $2.2bn.

The firm expects to use approximately $400 million of the proceeds to repurchase from Cisco preferred stock that will not be converted into shares of common stock.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Upcoming CPE Webinars

Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.