Pfizer's Zoetis (ZTS) May be Largest IPO Since Facebook (FB)

January 31, 2013 9:48 AM EST
Eyes are on focus for the biggest IPO to hit the U.S. since Facebook(Nasdaq: FB).

Bloomberg notes today that Pfizer's animal health spin-off, Zoetis, Inc. (NYSE: ZTS), will unload 86.1 million shares today with an expected range of $22 to $25 apiece. That gives Zoetis an initial market cap of $11.8 billion at the midpoint.

Zoetis would be the largest, publicly-traded animal health-focused company, competing with the likes of Sanofi-Aventis (NYSE: SNY), Lilly (NYSE: LLY), and Merck & Co. (NYSE: MRK).

Pfizer is only selling about 17 percent of the company in the offering. Sales for Zoetis were $4.3 billion in 2012, giving it about 20 percent of the total animal health market.

As a reminder, Facebook raised $16 billion when it IPO'd on May 18, 2012. Those following the stock knew what happened shortly after, with shares plummeting to below $20 in the following weeks. Zoetis may be the reverse of that; despite being a market leader with tangible profit, global food demand will bolster sector growth by about 6 percent annually over the next three years. One analyst from Huntington even sees Zoetis being a potential takeover target.

No time has been given on when the IPO will commence. Pfizer shares are lower in early trading Thursday.

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