Quintiles Jumps After Raising $947.4 Million in Increased IPO

Quintiles Transnational Holdings Inc. (Q), the biggest provider of testing services to drugmakers, jumped in trading after raising $947.4 million, 20 percent more than sought, in a U.S. initial public offering.

The shares rose 9.3 percent to $43.71 at 9:49 a.m. in New York. Quintiles and its owners sold 23.7 million shares yesterday for $40 each, after offering 19.7 million for $36 to $40 apiece, regulatory filings show. The stock sold is equivalent to an 18 percent stake.

Quintiles and owners including TPG Capital and Bain Capital LLC completed the sale amid a surge in demand for equities, as the Standard & Poor’s 500 Index posted its fifth straight record yesterday. The Durham, North Carolina-based company joins private-equity-backed companies such as Taylor Morrison Home Corp. and SeaWorld Entertainment Inc. that have taken advantage of the rising market to accomplish some of this year’s biggest IPOs.

The offering price values Quintiles at $6.6 billion including debt, data compiled by Bloomberg show. That compares with an enterprise value of about $3.8 billion for Quintiles at the time of its 2008 buyout, a person familiar with the terms said in September.

The offering was enlarged to allow Quintiles’s owners to sell more stock, while the company itself sold fewer shares than planned, filings show. Existing owners including TPG, Bain, London-based 3i Group Plc and Singapore state-owned asset manager Temasek Pte sold 10.6 million of the shares in the IPO, 78 percent more than they had originally filed to sell, while Quintiles sold 13.1 million shares, or about 5 percent less than planned, according to filings.

Cutting Stakes

TPG and Bain, which led the 2008 purchase of Quintiles, reduced their stakes to 19 percent each, according to filings. Executive Chairman Dennis B. Gillings, who founded the company more than three decades ago, also sold stock in the IPO, reducing his ownership to 19 percent from 24 percent.

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 stock is listed on the New York Stock Exchange under the symbol Q. The offering was led by Morgan Stanley, Barclays Plc and JPMorgan Chase & Co.

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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