Zoetis, the animal health division of Pfizer (NYSE:PFE), has set the terms on its IPO. The company plans to issue 86.1 million shares at a range of $22 to $25 each. The lead underwriters include JPMorgan (NYSE:JPM), BofA Merrill Lynch (NYSE:BAC) and Morgan Stanley (NYSE:MS). The company plans to list on the NYSE under the ticker “ZTS.”
Founded over 60 years ago, Zoetis is the No. 1 player in the market for animal medicines and vaccines. It sells more than 300 products — which treat such things as Lyme disease for dogs and E. coli for chickens.
For the first nine months of 2012, revenues increased by about 1.7% to $3.16 billion, and operating income spiked by 75% to $636 million. Zoetis sells its products across 120 countries.
Over the past few years, Pfizer has been shedding assets to focus on its core pharma business. And the strategy seems to be working. Pfizer’s shares have posted a gain of 21% for the past year.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.