Quintiles Seeks to Raise as Much as $790M in IPO Next Month

By Zachary Brennan

- Last updated on GMT

Quintiles Seeks to Raise as Much as $790M in IPO Next Month

Related tags Stock

CRO Quintiles and its shareholders are offering more than 19 million shares of common stock that will be priced between $36 and $40 per share, according to an updated S-1 filing with the US SEC.

The latest filing -- expecting about $790m -- adds about $200m to what the company previously estimated it would bring in from the IPO​. Of the 19m shares of common stock, the company is offering about 14m shares, and 5.9m shares, or 8.9m, if the underwriters of the IPO exercise in full their option to purchase additional shares. The underwriters include Barclays, Morgan Stanley and J.P. Morgan among others.

We estimate that the net proceeds to us from this offering will be approximately $489.8 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us​,” the company said, under the assumption that the $38 per share price would be met.

Quintiles plans to use about $306m to pay a loan obtained in February 2012, about $50m to repay indebtedness under its senior secured credit facilities, $25m to pay a one-time fee to Dennis Gillings, the company’s founder and chairman, and other sponsors, as well as any “remaining amounts for general corporate purposes​.”

The IPO, if it goes according to plan, would give Quintiles an enterprise value of about $6.3 billion, or about 13 times earnings before interest, taxes, depreciation and amortization in the previous year, according to filings and data compiled by Bloomberg​.

Quintiles’s IPO is scheduled for May 9, and the company plans to list on the New York​ Stock Exchange under the symbol Q.

The S-1 filing also continues to remain upbeat about the CRO industry in general, noting that R&D spending is expected to increase by about $4b by 2015.

We estimate that clinical development spending outsourced to CROs in Phases I-IV in 2011 was approximately $16 billion and will grow to approximately $22 billion by 2015. We expect outsourced clinical development to CROs to grow 5%-8% annually during this period. Of this annual growth, webelieve that up to 2% will be derived from increased R&D expenditures, with the remainder coming from increased outsourcing penetration​,” the North Carolina-based company said.

Related news

Show more

Related products

show more

Using Define-XML to build more efficient studies

Using Define-XML to build more efficient studies

Content provided by Formedix | 14-Nov-2023 | White Paper

It is commonly thought that Define-XML is simply a dataset descriptor: a way to document what datasets look like, including the names and labels of datasets...

Overcoming rapid growth challenges with process liquid preparation

Overcoming rapid growth challenges with process liquid preparation

Content provided by Thermo Fisher Scientific - Process Liquid Preparation Services | 01-Nov-2023 | Case Study

A growing contract development manufacturing organization (CDMO) was challenged with the need to quickly expand their process liquid and buffer preparation...

Why should you use clinical trial technology?

Why should you use clinical trial technology?

Content provided by Formedix | 01-Nov-2023 | White Paper

New, innovative clinical trial technology is helping to revolutionize the research landscape. COVID-19 demonstrated that clinical trials can be run much...

Related suppliers

Follow us

Webinars

Headlines