(Reuters) - The initial public offering of Eli Lilly Co’s (LLY.N) animal health unit, Elanco, was priced above the expected range at $24 per share on Wednesday, giving the company a market capitalization of $8.55 billion.
Elanco (ELAN.N) raised $1.51 billion from the IPO of 62.9 million shares. The offering was expected to be priced between $20 and $23 per share.
Lilly, which sold only a minority stake in the IPO, announced the separation of the unit in July following a nine-month review.
David Ricks, chief executive officer of Lilly, has steered the Indiana-based drugmaker’s efforts to take the animal health unit public at a time when it is looking beyond the failure of its experimental Alzheimer’s drug and pushing deeper into cancer treatments.
Elanco, which is the fourth-largest animal health company by revenue globally, sells medicines for pet animals, as well as livestock.
The global animal healthcare market is expected to grow 5 percent annually to $53.42 billion by 2025, according to data firm Research and Markets, making it an attractive destination for investors.
Reporting by Diptendu Lahiri and Manas Mishra in Bengaluru; Editing by Sweta Singh and Maju Samuel