Andersen Group (ANDG.N) witnessed its shares jump approximately 31% during their New York Stock Exchange debut on Wednesday. The successful initial public offering (IPO) valued the tax advisory firm at $2.3 billion. CEO Mark Vorsatz stated the listing provides the company with new capital to pursue acquisitions and fuel further expansion. Andersen Group offers tax, valuation, and financial advisory services to individuals and commercial clients. The San Francisco-based company’s stock opened at $21, significantly higher than the IPO price of $16 per share.
On Tuesday, Andersen Group successfully raised $176 million in its U.S. IPO, selling 11 million shares at the upper end of its marketed range, which was between $14 and $16. Vorsatz told Reuters that acquisitions would be a high priority over the next 30 months, noting interest from existing affiliates to join the publicly traded company. The U.S. IPO market has regained strength after a period of market turbulence, buoyed by Federal Reserve rate cuts that have boosted investor confidence and interest in new listings.
Kat Liu, Vice President at IPOX, commented that investors are responding positively to Andersen Group’s debut, citing the combination of brand recognition, stable earnings, and reasonable valuation. The company emerged from the remnants of Arthur Andersen’s 2002 collapse following the Enron scandal. HSBC (HSBA.L) previously acquired a portion of the firm’s tax practice, later rebranded as Andersen Tax in 2014 following a management buyout.
Vorsatz emphasised the company’s consistent financial performance, stating that their average revenue growth has been 15% over the past 23 years. He added that since becoming a private entity 16 years ago, their average net income growth has been 24% demonstrating a solid track record that has helped underpin investor confidence in this IPO.
