Pfizer files IPO for animal health unit Zoetis Inc

Pfizer yesterday filed for an initial public offering (IPO) for its animal health unit Zoetis Inc, as part of its plan to pay off debt and focus on its core business.

However, it will not relinquish its controlling interest in Zoetis, even after the IPO.

Under a regulatory filing with the US Securities and Exchange Commission, Pfizer,  the world's largest drug maker, will offer up to a 20-per cent stake in Zoetis in the IPO scheduled for the first half of 2013,  did not reveal detail the size of the offering or the anticipated share price.

Zoetis, which sells medicines, vaccines and other products for livestock as well as for pets, could have a market value of nearly $18 billion, according to analysts, which would value the 20 per cent stake offered in the IPO up to $3.6 billion.

New York-based Pfizer said it will exchange Class A common shares to its debt holders, who will then opt to sell the stock on the open market, but retain a 100-per cent interest in Zoetis through Class B shares that it may give to shareholders as dividend payouts.
                       
Pfizer and Zoetis will not receive any proceeds from the IPO. Both Class A and Class B shareholders have one vote per share on all matters except the election of directors where Class B shareholders have 10 voting rights.

In July 2011, Pfizer said that it was exploring alternatives, including a possible sale of its animal health and nutrition businesses, in the next two years in order to focus on expanding its low-cost pharmaceuticals unit. (See: Pfizer plans to sell animal health and nutrition businesses)