IPO seen valuing Pfizer’s animal health unit at $12.5 billion

Pfizer Inc's plan to take its animal health unit public by selling 86.1 million shares at between $22 and $25 each could value Zoetis Inc as much as $12.5 billion.

The Wall Street Journal had last month reported that the Zoetis initial public offering (IPO) could raise about $4 billion, but at $25 per share, the offering would raise about $2.2 billion.

Pfizer, the world's largest drug maker had, in August 2012, filed for an IPO for Zoetis as part of its plan to pay off debt and focus on its core business. (See: Pfizer files IPO for animal health unit Zoetis Inc)

Under a regulatory filing with the US Securities and Exchange Commission, Pfizer had said that it would offer up to a 20-per cent stake in Zoetis in the IPO scheduled for the first half of 2013.

The IPO is scheduled to be priced on 31 January and shares are expected to begin trading on the New York Stock Exchange on 1 February.

Zoetis, which sells medicines, vaccines and other products for livestock as well as for pets, will use a dual-class share structure, with Pfizer offering all the Class A common shares in the IPO.