(Updates with closing share price in sixth paragraph.)
Jan. 18 (Bloomberg) -- Zoetis Inc., the animal-health unit of Pfizer Inc., is seeking as much at $2.2 billion in an initial public offering.
Pfizer is offering 86.1 million shares for $22 to $25 each, Zoetis said yesterday in a regulatory filing. The midpoint of the range would value the Madison, New Jersey-based company at $11.8 billion, or about 26 times earnings in the 12 months through Sept. 30. The IPO is scheduled to price Jan. 31, according to data compiled by Bloomberg.
Pfizer Chief Executive Officer Ian Read is selling Zoetis as one of a series of efforts to shrink the world’s biggest drugmaker by divesting non-drug units. Pfizer in April agreed to sell its infant-nutrition business to Vevey, Switzerland-based Nestle SA for $11.9 billion.
Zoetis had about $580 million of long-term debt as of Sept. 30, according to the company’s filings. The company raised $3.65 billion in its first public debt sale earlier this month, according to data compiled by Bloomberg.
Zoetis plans to list on the New York Stock Exchange under the symbol ZTS. JPMorgan Chase & Co., Bank of America Corp. and Morgan Stanley are leading the offering.
Pfizer shares fell 1.1 percent to $26.54 at the close of New York trading.
--With assistance from Matt Robinson in New York. Editors: Andrew Pollack, Elizabeth Wollman