Elanco IPO launched, shares begin trading on NYSE

Elanco Animal Health began trading on the New York Stock Exchange (NYSE) on September 20 under the ticker symbol “ELAN.”

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Photo from Twitter
Photo from Twitter

Elanco Animal Health began trading on the New York Stock Exchange (NYSE) on September 20 under the ticker symbol “ELAN.”

“A historic day for Elanco! A tribute to our 5,800 team members who made it happen, and the amazing farmers, veterinarians and pet owners we serve,” Elanco President Jeff Simmons posted on Twitter to commemorate the IPO.

The pricing of its initial public offering (IPO) of 62.9 million shares of its common stock began selling at a price to the public of $24 per share. The stock’s value grew throughout the day, as Bloomberg reported that shares rose to $32.11 as of 11:40 a.m., giving it a market value of $11.7 billion.

The offering is expected to close on September 24, 2018, subject to customary closing conditions.

Elanco has granted the underwriters a 30-day option to purchase up to 9.435 million additional shares of common stock at the initial price to the public less underwriting discounts.

Following the IPO, Eli Lilly and Company, which is spinning off Elanco as a stand-alone company, is expected to hold approximately 82.3 percent of Elanco (80.2 percent if the underwriters' option to purchase more shares is exercised in full). The net proceeds from the IPO, net of certain amounts to be retained by Elanco, will be paid to Lilly as partial consideration for the animal health businesses that Lilly is transferring to Elanco in connection with the IPO.

Goldman Sachs & Co. LLC, J.P. Morgan and Morgan Stanley are joint lead book-running managers for the offering. Barclays, BNP Paribas, BofA Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank Securities, Evercore ISI and Cowen are book-running managers for the offering.

A registration statement relating to these securities was filed with, and declared effective by, the U.S. Securities and Exchange Commission (SEC).  

Founded in 1954, Elanco’s mission is to provide comprehensive products and knowledge services to improve animal health and food-animal production in more than 90 countries around the world. The company, according to its press release, values innovation, both in scientific research and daily operations, and strives to cultivate a collaborative work environment for more than 5,800 employees worldwide. Elanco’s worldwide headquarters and research facilities are located in Greenfield, Indiana.

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