Moody's says Quintiles is worth $4B, but IPO price remains mystery

Last week's big news that Quintiles is finally going public left one burning question: How much will the company raise in its IPO?

The CRO giant has remained silent on that front, using a placeholder value of $600 million in its SEC filing, but analysts at Moody's estimate Quintiles is worth about $4 billion, and if they're correct, what remains to be seen is just what size stake the company intends to offer.

Furthermore, that valuation would mean Quintiles has benefited handsomely from its of-late dealmaking and expansion. Last year, Reuters valued the company's equity value at about $2.77 billion and, back in 2008, a team of 4 private equity giants led by Bain Capital and TPG Capital bought the CRO for $3.8 billion.

Since then, though, Quintiles has plotted surging growth, becoming the world's largest CRO and partnering with all of the world's top-20 drugmakers in trials R&D projects around the globe. Last year, Quintiles pulled down about $3.7 billion in revenue and $177.5 million in net income, according the company, and it now employs 25,000 people across 60 countries.

No matter how many shares Quintiles tenders, its 4 private equity owners will retain a majority stake, North Carolina's News & Observer reports, and the company has said it doesn't plan on issuing regular cash dividends to future shareholders.

- read the Moody's note (sub. req.)
- check out the News & Observer story

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