IMS Health IPO 'to Value Firm at c.$7 Billion'

Pharma research giant IMS Health is preparing to launch an Initial Public Offering (IPO) in the next fortnight, which could value the company at around $7 billion.

IMS was taken private in March 2010 by investment firms TPG Capital and the Canada Pension Plan Investment Board (CPPIB), who paid $5.2bn. Rumours about the likelihood of an IPO have been circulating for some time, and in January it was reported that IMS had filed a registration with the US Securities and Exchange Commission (SEC) for an IPO on the New York Stock Exchange.

The company has now announced that its expected IPO price will be $18 to $21 per share, valuing the company as high as $6.97 billion. The sale of 65 million shares is expected to raise about $1.36 billion, based on the top end of the price range.

According to an article in the Wall Street Journal, IMS plans to use most of the expected IPO proceeds to repay debt.

Web site: www.imshealth.com .