Tax firm Andersen valued at $2.3 billion as shares surges in NYSE debut

Dec 17 (Reuters) – Andersen Group’s shares jumped about 31% in their debut on the NYSE on Wednesday, valuing the tax advisory firm at $2.3 billion, as investors bet on the brand long-associated with audit quality outweighing its reputational baggage.

The San Francisco, California-based company’s stock opened at $21, compared with the offer price of $16 per share.

Andersen raised $176 million in its U.S. initial public offering on Tuesday after selling 11 million shares at the top end of its $14 to $16 marketed range.

After a period of market turbulence sparked by President Donald Trump’s trade policies that dampened new offerings, the U.S. IPO market has regained momentum, supported by Federal Reserve rate cuts that have revived investor confidence and appetite for new listings.

Medical supplies giant Medline is also slated to debut on Wednesday, on the Nasdaq.

Andersen Group emerged from the rubble of global accounting firm Arthur Andersen’s 2002 collapse, following a scandal at the now-defunct energy company Enron.

Arthur Andersen was convicted of obstruction of justice for its role in the Enron saga, but the verdict was later overturned by the Supreme Court.

Following its collapse, HSBC bought part of the firm’s tax practice through a new arm, Wealth & Tax Advisory Services (WTAS).

WTAS, which split from HSBC in a management buyout, was rebranded in 2014 as Andersen Tax.

Andersen offers tax, valuation and financial advisory services to individuals and commercial clients.

The company reported net income of $65.7 million on revenue of $668.3 million for the nine months ended September 30, compared with net income of $144.5 million on revenue of $589.2 million a year earlier.

Morgan Stanley and UBS Investment Bank were the lead underwriters for the offering.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Maju Samuel and Shailesh Kuber)