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KPMG Ready for a Ticker Symbol

Dribs and drabs. That basically explains the IPO market so far this year. And, expect this to continue for some time.

However, there is a mega IPO on tap for this week: KPMG. Yes, this is the consulting arm of the Big Five accounting firm KPMG LLP.

IPO investors are craving stability and KPMG certainly offers enough of it. In all, the company has more than 2000 clients. In fact, KPMG has entered into key alliances, such as with Cisco, Qwest, FedEx and Microsoft (Cisco invested $1 billion). With the alliances, KPMG is better able to offer comprehensive technology solutions for clients.

Since 1995, revenues have grown from $569.7 million to $1.942 billion as of 1999.

The lead underwriter is Morgan Stanley and the price range is $16-$18 (the company intends to issue a whopping 112 million shares). The proposed ticker symbol is KCIN.

ATP Oil & Gas plans to go public this week. The company develops natural gas and oil properties in the Gulf of Mexico.

While the company was profitable last year ($18 million in net income), this was somewhat misleading. Rather, the profit was the result of a one-time gain. In fact, for the first nine months of 2000, the company had a loss of $4.3 million.

True, the problems in California are positive for the company. However, by all accounts, it looks like energy prices have topped out.

The proposed ticker symbol is ATPG. The price range has been increased from $15-$17 to $15-$18, indicating rising demand for the offering (the company plans to issue 7.5 million shares). The lead underwriter is Lehman Brothers and the company plans to raise about $123 million. Although, much of the money will be used to pay off about $111 million in debt.

Last Week's Action

So far, January has been dismal. There have only been three IPOs priced, raising a mere $212.4 million. During January of 2000, there were 24 IPOs with $4.5 billion raised.

Last week, Exact Sciences went public. But the IPO only increased 38 cents to $14.38.

Then again, the company is early stage. It develops products for colorectal cancer (the company has 10 patents). Unfortunately, the company does not expect any material revenues until 2003. In the first nine months of 2000, losses were about $6.7 million.