|Quintiles CEO Tom Pike|
Quintiles has finally affixed a price tag to its long-held plans to go public, plotting to raise about $790 million and pay down its outstanding debt.
In an updated SEC filing, Quintiles says it will offer about 13.8 million shares while its shareholders tender another 5.9 million. At an asking price of $40 a pop, the IPO would gross $552 million from the company and about $236 million for the shareholders, money Quintiles can't touch. If the CRO's underwriters exercise their option on about 3 million additional shares, the total could balloon to nearly $908 million.
Quintiles is yet to say when it plans to launch the offering, but the company has applied to trade on the New York Stock Exchange under the symbol "Q."
The CRO plans to drop about $356 million of its IPO haul on debt, directing another $25 million to founder Dennis Gillings and other shareholders in lieu of discontinued annual service fees. The rest will go to corporate expenses and strategic growth, which Quintiles said could include more M&A.
The offering works out to about a 15% stake of the company, Bloomberg notes, valuing Quintiles at about $4.9 billion. In 2008, a team of private equity firms bought the company for a reported $3.8 billion, and Quintiles has since increased its market share through acquisitions and partnerships with the world's largest drug developers.
The $790 million total is a hike over the $600 million placeholder value Quintiles penciled in when first it announced IPO plans in February. Since then, the CRO disclosed that it raked in $927 million in revenue last quarter, a 4.2% increase over the year before, and net income of $48 million, roughly a 10% jump. In 2012, Quintiles closed about $3.7 billion in revenue and $177.5 million in net income.