Mon, Feb 04, 2013 - Page 15 News List

Shares of Pfizer Inc subsidiary Zoetis soar on NYSE debut

MAJOR GAINS:In the US’ biggest IPO since May last year, strong interest from investors led to impressive gains, with the firm’s stock closing up 19.27 percent

AFP, NEW YORK

Zoetis Inc, pharmaceutical giant Pfizer Inc’s animal-health division, made a dramatic debut on Wall Street on Friday as the biggest initial public offering (IPO) since Facebook Inc.

The shares, trading under the symbol “ZTS” on the New York Stock Exchange (NYSE), soared 19.27 percent to close at US$31.01 a share.

The shares had climbed 22 percent higher in morning trade.

Zoetis generated heavy interest from investors after the group indicated on Thursday that it had raised its IPO price to US$26 after initially proposing a range of between US$22 and US$25.

The IPO, with 86.1 million shares offered, raised US$2.24 billion. It leaves Pfizer holding an 83 percent stake in the unit.

An additional 12.9 million shares of Zoetis could be sold in a supplementary offering. If the additional allocation is sold, Pfizer’s holding will be reduced to about 80 percent.

Under the public offering, Zoetis will trade independently of Pfizer on the New York Stock Exchange, but will still be majority-owned by the pharmaceutical giant. Five of the nine members of the Zoetis board currently work for Pfizer. Zoetis reported revenues of US$4.2 billion in 2011 and US$3.2 billion through the first nine months of last year. Its profits during these periods were US$245 million and US$446 million respectively.

Zoetis’ market debut was the biggest since Facebook’s IPO on May 18 last year, which raised US$16.02 billion, the second-biggest US IPO in history.

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