* Bain, TPG lead investors in Quintiles
* Private equity-backed IPOs this year perform well
By Soyoung Kim and Olivia Oran
NEW YORK, Jan 30 Quintiles Transnational Corp,
the largest provider of testing services to drugmakers, has
chosen Morgan Stanley, Barclays Plc and JPMorgan
Chase & Co as joint bookrunners for a planned initial
public offering, people familiar with the matter said on
Quintiles, owned by private equity investors that include
Bain Capital LLC and TPG Capital LP, held "bake-off" talks with
investment banks to appoint bookrunners for an IPO, Reuters
reported last week.
The proposed offering would come five years after Bain and
TPG became lead investors in Quintiles in January 2008, when One
Equity Partners sold its stake in the Durham, North
Carolina-based company. Britain's 3i Group Plc and
Singapore's Temasek Holdings are minority investors in
Private equity-backed IPOs have put in a strong showing
since the start of the year, prompting more buyout firms to
consider a stock market flotation as a way to exit their
Bain was not immediately reached for comment. TPG, Morgan
Stanley, Barclays and JPMorgan declined comment. The sources
asked not to be named because the matter is not public.
Quintiles relies on pharmaceutical companies outsourcing
more of their non-core research functions. The company recorded
net service revenue of about $3.5 billion for the 12 months to
the end of June 2012, according to Moody's Investors Service
Regulatory filings from publicly listed 3i show that the
private equity firm valued its 7 percent stake in Quintiles at
109 million pounds at the end of March 2009, implying an equity
value for Quintiles of 1.56 billion pounds ($2.46 billion).
By the end of March 2012, 3i valued its stake, that had
dropped to 4.9 percent, at 86 million pounds, implying an equity
value for Quintiles of 1.76 billion pounds ($2.77 billion).
Nevertheless, an IPO could value the company substantially above
or below such mark-to-market estimates.