Medpace IPO drums up $185m

Contract research organization Medpace (NSDQ:MEDP) said yesterday that its initial public offering closed after raising more than $185 million, including an underwriter’s over-allotment that added more than $24 million to the IPO.

Cincinnati-based Medpace said it floated 8.05 million shares at $23 apiece, including the 1.05-million-share over-allotment, netting about $173.6 million for the CRO. The proceeds are earmarked for paying down a portion of Medpace’s debt, the company said.

Private equity shop Cinven paid CCMP Capital Advisors $921.3 million for Cincinnati-based Medpace in 2014.  The company originally registered for the $150 million IPO in late June, later raising the target to $161 million.

Medpace, which posted sales of $320.1 million last year, swung to black during the 1st quarter on sales growth of 15.5%to $87.8 million. Profits were $3.5 million, or 8¢ per share, compared with -$59.0 million or no cents per share during Q1 2015. Medpace, which employs 2,200 workers in 35 countries, had net debt of $378.5 million as of March 31.

Jefferies and Credit Suisse were co-lead book-runners for the IPO, with UBS and Wells Fargo as joint book-runners and Robert W. Baird and William Blair as co-managers.

MEDP shares closed up 0.3% at $29.32 apiece yesterday and gained another 0.8% in pre-market trading today, to $29.55 per share. The stock is up 27.5% since the IPO launched August 11.

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