Quintiles' $950M IPO keeps on giving for PE backers

Two years after Quintiles' ($Q) trend-setting IPO, the CRO's private equity owners are still profiting from the company's continued growth, pocketing $545 million in a secondary offering.

Bain Capital, TPG, 3i and Temasek Life Sciences--among the cadre of private equity giants that took Quintiles public--sold off a combined 7 million shares of the company, pricing them at $77.85 each, right about at market rate. The four firms have been gradually reducing their ownership of Quintiles since its IPO, and their collective stake is down to around 35% from its heights of more than 70% when the CRO went public.

And each follow-on offering has proven more and more lucrative. Quintiles debuted at $40 a share and has nearly doubled in value in ever since, lining the pockets of its private equity benefactors in the process. Bain, TPG and 3i have grossed billions through repeated secondary stock sales, while Singapore's Temasek has only recently started putting up its stake in the company.

Meanwhile, Quintiles expects to keep up the pace of growth that has made its stock so valuable. The company brought in $1.1 billion in revenue last quarter, a 3.8% increase over the same period last year, expecting 2015 revenue growth of roughly 9%.

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