U.S. Markets closed

Zoetis raises about $2.2 billion in IPO

The Associated Press

Pfizer's animal health business Zoetis has raised about $2.2 billion in its initial public offering of 86.1 million shares, and the stock is expected to begin trading Friday.

The New York company priced the IPO at $26 per share, which is $1 above the top end of the range it estimated in filings with the Securities and Exchange Commission.

Zoetis said underwriters have an option to purchase up to an additional 12.9 million shares to cover excess demand.

The company, which makes and sells animal health medicines and vaccines, will not receive any of the offering proceeds. Pfizer, the world's largest drugmaker, will retain about an 83 percent ownership stake in Zoetis and will own all of the company's outstanding Class B shares. The offering focused on Class A shares.

If the underwriters exercise their option in full, Pfizer's ownership stake will be reduced to about 80 percent.

Pfizer said Tuesday Zoetis revenue rose 6 percent to $1.17 billion in the fourth quarter.

Shares will trade on the New York Stock Exchange under the symbol "ZTS."