Wednesday December 20, 10:49 am Eastern Time
KPMG Consulting reduces IPO shares, keeps price range
WASHINGTON, Dec 20 (Reuters) - KPMG Consulting Inc., one of the world's largest consulting firms, said on Wednesday that it has reduced the number of common shares to be sold in its initial public offering to 354.6 million from about 367.1 million, but left the price range unchanged at $6.75 to $8.75 a share.
The company, which has received approval to trade on Nasdaq under the symbol ``KCIN'' (Nasdaq:KCIN - news), reported the share reduction in a filing with the Securities and Exchange Commission. It was not immediately known when the offering will debut.
KPMG Consulting, whose services include Internet and systems integration, is offering 61 million shares, while its parent, KPMG LLP, is offering 293.6 million for itself and on behalf of its partners and others.
The parent is one of the Big 5 U.S. accounting firms, along with Arthur Andersen, Deloitte & Touche, Ernst & Young and PricewaterhouseCoopers.
KPMG Consulting will have 574.6 million common shares outstanding when the IPO is completed.
If there is heavy demand for the 354.6 million shares, the IPO's chief underwriter, Morgan Stanley Dean Witter, has an option to buy 53.2 million additional shares.
When the IPO is completed, KPMG Consulting will not be a member of KPMG International, the worldwide association of independent professional services firms that share the KPMG name, according to the IPO prospectus.
KPMG LLP, the non-U.S. KPMG International members firms and their partners will together hold no more than 19.9 percent of KPMG Consulting.
The company predicted it will receive about $450.4 million in proceeds from the IPO, $215.4 million of which will be used to repurchase its preferred stock held by Cisco Systems Inc. (NasdaqNM:CSCO - news) that will not be converted into common stock.
The rest of the money will go toward repaying outstanding debt. |
