TPG-Backed Quintiles Outlines $790 Million Price in IPO

Quintiles Transnational Holdings Inc., the biggest provider of testing services to drugmakers, filed to raise about $790 million in a U.S. initial public offering.

The company and its shareholders, including TPG Capital and Bain Capital LLC, are offering 19.7 million shares, equivalent to about a 15 percent stake, for $36 to $40 apiece, according to a regulatory filing today.

At the midpoint of the range, Quintiles would have a market value of about $4.9 billion, according to data compiled by Bloomberg. It joins companies including ING U.S. Inc. that are selling shares in the coming weeks after U.S. stocks have risen to record levels and volatility in share prices has subsided.

The IPO would give Quintiles an enterprise value of about $6.3 billion, or about 13 times earnings before interest, taxes, depreciation and amortization in the 12 months through December, according to filings and data compiled by Bloomberg. Private- equity firms led by TPG and Bain bought Quintiles in 2008 in a deal that valued the company at $3.8 billion, including debt, a person familiar with the terms said in September.

Durham, North Carolina-based Quintiles was founded more than three decades ago by Dennis B. Gillings, who serves as executive chairman. Gillings and his affiliates are trimming their stake to 20 percent from about 24 percent, the filing shows. TPG and Bain each plan to offer 1.42 million shares, reducing their holdings to 19 percent each, while Singapore’s state-owned asset manager, Temasek Holdings Pte, is selling about 600,000 shares and will own 8.2 percent of the company.

Repaying Debt

Quintiles itself is selling 13.8 million shares in the IPO, while shareholders are offering 5.9 million. The company expects about $489.8 million in proceeds from the IPO, which it will use partly to repay borrowings, filings show, leaving about $2 billion of long-term debt.

Quintiles generated $4.87 billion of revenue in 2012, 12 percent more than in the previous year, and conducted business in about 100 countries, filings show. Net income last year fell 27 percent to $176.6 million.

The biggest IPO in the U.S. so far this year was that of Zoetis Inc., the animal-health company spun off by Pfizer Inc. The company raised $2.57 billion including the overallotment option. ING U.S., the American insurance unit of ING Groep NV, is seeking to raise as much as $1.54 billion in an initial offering on May 1, data compiled by Bloomberg show.

Quintiles’s offering is scheduled for May 9, and the company plans to list on the New York Stock Exchange under the symbol Q. Morgan Stanley, Barclays Plc and JPMorgan Chase & Co. are leading the offering.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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