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| Quintiles executives rang the opening bell at the New York Stock Exchange on Friday (Click to expand).--Courtesy of NYSE |
After months of rumor, vagary and anticipation, global CRO Quintiles ($Q) is finally a public company, raising a total of $947 million after tendering more shares than initially planned.
Quintiles sold 23.7 million shares at $40 each, with 13.1 million benefiting the company and the remaining 10.6 million coming from founder Dennis Gillings and the CRO's private equity owners. Just last week, Quintiles had planned to sell about 19.7 million shares, hoping for $790 million, but investor demand pushed the needle upward.
Quintiles finished the day up about 6% after peaking at $44.12.
The final tally values the company at about $5.7 billion, above the $4.9 billion implied by Quintiles' initial pricing and far beyond the $3.8 billion paid to acquire the company back in 2008.
The CRO has said it plans to spend about $356 million of the haul on debt, directing another $25 million to Gillings and other shareholders in lieu of discontinued annual service fees. The rest of the cash will go to corporate expenses and strategic growth, which Quintiles said will likely include more M&A.
Last quarter, the company raked in $927 million in revenue, a 4.2% increase over the year before, and net income of $48 million, roughly a 10% jump. In 2012, Quintiles reported about $3.7 billion in revenue and $177.5 million in net income.
- read the announcement
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