KPMG Consulting files $1 billion IPO

KPMG Consulting Inc., based in McLean, Virginia, has applied for a NASDAQ listing under the symbol "KCIN." The company was previously a part of KPMG LLP, one of the Big Five accounting and consulting firms.

After the IPO, KPMG LLP and its partners and principals will own no more than 19.9%, of its common stock, and within a five-year period will completely divest itself of any common shares they may hold, according to a Reuters report. KPMG Consulting plans to use the net proceeds from the IPO, which is being underwritten by Morgan Stanley Dean Witter for working capital, to repurchase preferred stock and repay outstanding debt, among other things.

KPMG’s revenues have grown to $1.942 billion in fiscal 1999 from $569.7 million in FY 1995. In the first six months of FY 2000, revenues were $1.069 billion, an increase of 17.3% from the same period last year, the SEC filing said.