Greenfield-based Elanco Animal Health Inc. has provided more details on its upcoming Initial Public Offering. The subsidiary of Eli Lilly and Co. (NYSE: LLY) has not yet released a date for the IPO, but says it will list its common stock on the New York Stock Exchange under the ticker symbol "ELAN."
Lilly first announced plans to spin-off Elanco into a separate company in July. Chief Executive Officer Dave Ricks said at the time the move would create maximum value for Lilly shareholders.
Elanco says it will offer 62.9 million shares of its common stock in the IPO, with a 30-day option for underwriters to purchase up to 9.4 million additional shares at the IPO price. The IPO price is expected to be between $20 and $23 per share.
The shares offered in the IPO will represent about 18.7 percent of Elanco. Lilly is expected to hold the majority of Elanco shares. Net proceeds from the IPO are expected to be paid to Lilly as partial consideration for the animal health businesses that Lilly is transferring to Elanco in connection with the IPO.
Lilly filed a registration statement with the U.S. Securities and Exchange Commission for the IPO last month, but that statement has not yet become effective. The IPO is expected to take place before the end of the year.