Johnson & Johnson’s consumer health business, Kenvue Inc., has raised $3.8 billion in its initial public offering (IPO), making it the biggest US listing since 2021. This comes after the slowest start to a year for US IPOs since 2016. The IPO price of $22 per share, which is in the top half of the company’s marketed range of $20 to $23 each, gives Kenvue a market value of more than $41 billion. The company also expanded the number of shares it’s selling to 172.8 million from 151 million.
Kenvue’s products include dozens of well-known brands such as Tylenol, Listerine, Neutrogena, and Nicorette. On a pro forma basis, the business had net income of about $1.5 billion on sales of almost $15 billion for the year ended Jan. 1, according to its filings.
The IPO is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. Its shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol KVUE.
Johnson & Johnson has been facing numerous lawsuits alleging that talc in its baby powder caused cancer. This has contributed to a 9.8% decline in its share price in the past year, in contrast to the 1% gain in the S&P 500 Health Care Index. While Johnson & Johnson is retaining liability for the talc cases, Kenvue has already been sued over talc-injury claims and has cautioned that it may be subject to claims arising outside the US and Canada.
Overall, Kenvue’s IPO marks a significant milestone for the company and is expected to generate much-needed capital to fund its growth initiatives. It is also a positive development for the US IPO market, which has been relatively quiet in recent months. Investors will be keeping a close eye on Kenvue’s performance in the coming months as it seeks to establish itself as a leading player in the consumer health market.
Social Plugin