Pharmaceutical services company PRA Health Sciences, one of two local companies of its type planning to go public, is hoping to sell 18.6 million shares of stock for between $20 and $23 per share.
If PRA succeeds, such a deal would value the company at well over $1 billion.
Raleigh-based PRA filed documents in September unveiling plans to sell up to $375 million in stock in an IPO. On Monday the company filled in the blanks with a follow-up document.
PRA estimates that it will realize proceeds of $343 million, after deducting expenses, from the IPO if its shares are priced at $21.50 – the midpoint of the price range it is eyeing.
It plans to use that money to pay down its debt, which totaled $1.26 billion as of Sept. 30. PRA has about 10,300 employees worldwide and posted $1.2 billion in revenue last year. It lost money in 2013 and in the first six months of this year, but in the third quarter it generated $1.2 million in net income on revenue of $320.1 million.
PRA is the world’s fourth-largest contract research organization, or CRO. CROs help pharmaceutical and biotechnology companies test experimental drugs.
PRA itself plans to sell 17 million shares in its IPO. Private equity giant Kohlberg Kravis Roberts, which acquired PRA last year for $1.4 billion, plans to sell another 1.6 million shares. PRA won’t receive any of the proceeds from the sale of KKR’s shares.
Even after an IPO, KKR would own a controlling stake in PRA: 66.9 percent, or 62 percent if the underwriters exercise their options to purchase an additional 2.8 million shares.
PRA would have 57.3 million total shares outstanding following an IPO. That would put its market capitalization – the value of its outstanding stock – at $1.23 billion if its shares fetch $21.50 per share. After an IPO, PRA’s shares would be sold on Nasdaq under the symbol “PRAH.”