Accenture Raises $1.67B In Partial IPO

Business and IT-consulting firm Accenture Ltd. has raised $1.67 billion in a partial initial public offering, topping the $1 billion it had predicted when announcing plans for the IPO in April.

Accenture, part of Big 5 accounting firm Arthur Andersen until the two split last August, sold 115 million shares at $14.50 each, or more than 15% of its $9.8 billion business. The firm, which now trades on the New York Stock Exchange under the symbol ACN, hit near the high end of its predicted $13 to $15 per share range. As of 10 a.m. EST Thursday, Accenture was trading at just above $15 per share.

Accenture, with more than 70,000 employees and a compounded annual growth rate of 17.9% over the past 10 years, is the second consulting firm with Big 5 ties to take at least part of its firm public. In February, KPMG Consulting Inc. launched a $2 billion IPO with more than 112 million shares hitting the street at $18 per share. Since its IPO, KPMG Consulting's stock price has traded at around 20% below its initial offering price. Shares were trading at $14.07 on Thursday morning.

But Accenture isn't looking to place its fate entirely in the hands of stockholders, says Tom Rodenhauser, lead analyst with Consulting Information Services. "It's more likely that Accenture is looking to generate currency for future acquisitions," he says.