Accenture has disregarded fears of volatile markets to go ahead with a partial flotation aimed at raising $1bn (£700m). Partners in the consultancy firm "voted overwhelmingly" to back the plans following a two-day meeting in Dallas, Texas. This is despite problems faced by PricewaterhouseCoopers and KPMG, which have recently revealed plans to lay off staff due to the economic downturn.
The Accenture partners expect to receive a handsome windfall from the flotation – an average $4.3m (£3m) in shares if divided equally. It is believed, however, that senior partners will receive a greater proportion of shares.
Partners will also have to wait before they can convert shares into cash, waiting a year before they can sell 10% of their stock, and unable to sell 25% until they retire. “This whole effort is about partners investing what used to be cash compensation back into the business,” said the firm’s managing partner and CEO Joe Forehand.
The deal is being co-managed by Morgan Stanley and Goldman Sachs, and it seems likely that the initial $1bn filing could well increase once an amended filing appears over the next four to six weeks. “The filing registration statement reflects an aggregate offering price of $1bn, but that is solely for the purpose of calculating the registration fee,” said Accenture spokeswoman Roxanne Taylor.
KPMG Consulting’s IPO last year, organised by Morgan Stanley, also rose in value after the initial filing, jumping from $1bn to $1.9bn four months later. It has however recently seen its shares fall from $18 at the time of the IPO to below $14.