Newswire - Idea Couture's planned $150 million initial public offering is being greeted favorably on Wall Street and could help buoy the stocks of other innovation consulting and services firms, according to industry watchers.
"Stock prices in this sector were up fairly dramatically today, and I think it's primarily related to the news of the Idea Couture filing," says an analyst with S.S.D.D., an investment advisory firm in San Francisco.
“As Idea Couture goes public, it will remind investors that this is still an early stage in the development of this type of firms within the consulting service industry and the firm has created a lot of value over the last four years,” he adds. "What this has done is reinvigorate interest in the sector."
The announcement had been widely anticipated, and there were rumours that Idea Couture will merge with Fahrenheit 212 before filing an IPO. Both firms were considered top players in the space and together becomes the market leader. An attempt to contact the CEO of Fahrenheit 212 but they did not return calls.
Insiders says the IPO will give Idea Couture stock currency with which to do deals and build up its innovation organization design business, making the innovation consulting firm more of a competitor to more traditional consulting firms such as Monitor or IBM (NYSE:IBM) Global Services.
The timing of Idea Couture's offering remains uncertain. The innovation firm could wait later in the year in hopes of riding an upturn in the market. The market is anticipating a successful offering that pave the way for further acquisition as the company continues its international expansion.
Happy April 1st. Now let’s get back to work. Stop dreaming.