US float to boost KPMG Consulting
KPMG Consulting is to issue shares in the USA in a bid to raise £1.8bn for investment and expansion.
A filing with the Securities and Exchange Commission reveals the firm is hoping to sell more than 300 million shares priced between £4.50 and £5.80, which should produce a value for the organisation of around of £3.4bn.
KPMG has yet to make any public statement about the share issue but details from the SEC reveal that the partners will retain only 20% of the firm.
Proceeds from the shares could be used to pay off existing debts, provide working capital and fund expansion by acquisition.
The move comes as the SEC continues to exert pressure on the big firms to split their consultancies from audit services.
KPMG has been an ardent critic of the SEC in the UK where it has argued that auditor objectivity is not comprimised by the existence of consulting arms.The SEC is currently staging hearings in Washington on its proposals to ban auditors from have consultancies.