Quintiles Raises $947.4 Million Pricing IPO at Top of Range

Quintiles Transnational Holdings Inc. (Q), the biggest provider of testing services to drugmakers, raised $947.4 million in its U.S. initial public offering, pricing an increased number of shares at the top of the range.

The company and shareholders including TPG Capital and Bain Capital LLC sold 23.7 million shares for $40 each, according to a company statement, after offering 19.7 million shares for $36 to $40 apiece. The stock will start trading tomorrow, listed on the New York Stock Exchange under the symbol Q.

Quintiles joins companies such as ING U.S. Inc. and Taylor Morrison Home Corp. that have taken advantage of record stock-market prices to complete some of this year’s biggest IPOs. The sale also enables the private-equity owners to gain from their 2008 buyout of Quintiles, which the midpoint of the offering range valued at about $6.3 billion including debt, according to data compiled by Bloomberg based on the original IPO terms.

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. Private-equity firms this year have pushed ahead with U.S. IPOs of companies held since before the financial crisis as the Standard & Poor’s 500 Index has climbed to record levels, allowing sellers to reap higher prices.

TPG and Bain, which led the 2008 purchase of Quintiles, each planned to reduce their respective stakes to 19 percent from 23 percent in the IPO by selling stock, according to the original offering terms. Singapore state-owned asset manager Temasek Holdings Pte and London-based 3i Group Plc also planned to trim their stakes, the original terms show. Executive Chairman Dennis B. Gillings, who founded the company more than three decades ago, also planned to sell stock in the IPO, reducing his ownership to 20 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 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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