PPD Gains 17% After Raising $1.62 Billion in U.S. IPO (3)

Biotechnology and drug-research services firm PPD Inc. rose as much as 17% in its trading debut after raising $1.62 billion in the biggest U.S. initial public offering so far this year.

The company sold 60 million shares Wednesday for $27 each after marketing them $24 to $27. The shares closed up 11% to $30.

“We’re a company who’s gaining share,” PPD Chief Executive Officer David Simmons said in an interview. “We’re using all of the proceeds to pay down debt to get to a leverage level that’s acceptable to the public markets.”

Business-to-business firms such as PPD have tended to ...