Johnson & Johnson merchandise on the market in New York.
Scott Mlyn | CNBC
Johnson & Johnson will price shares of its consumer-health spinoff Kenvue at $20 to $23 in an initial public offering later this 12 months, the corporate mentioned in a regulatory submitting Monday.
The spinoff, which might be valued at round $40 billion at that share vary, may very well be the biggest IPO in a subdued U.S. marketplace for such choices 12 months to date.
J&J mentioned it launched a roadshow for the IPO of greater than 151 million shares of widespread inventory. Kenvue plans to meet with potential buyers as early as Monday, sources conversant in the matter informed The Wall Street Journal.
Kenvue estimates the IPO will generate web proceeds of round $3.15 million, the submitting mentioned. Those proceeds and any income from associated debt-financing transactions will go to J&J.
Goldman Sachs, JPMorgan Chase and Bank of America are the main underwriters for the IPO, the corporate mentioned in its preliminary prospectus filed with the Securities and Exchange Commission.
Kenvue expects to grant underwriters a 30-day choice to buy up to a further 22.6 million shares of inventory to cowl any over-allotments, in accordance to the submitting.
J&J previously said it expects to full the separation from Kenvue by mid- to late 2023.
The firm famous it should personal 1.7 billion shares of Kenvue’s widespread inventory after the IPO, representing 91.9% of the spinoff’s whole shares. Last 12 months, J&J mentioned it should scale back the remainder of its stake in Kenvue later in the 12 months.
Kenvue would commerce on the New York Stock Exchange underneath the inventory ticker KVUE.
J&J’s consumer-health enterprise makes Band-Aid bandages, Listerine mouth wash, skincare merchandise underneath the model names Neutrogena and Aveeno, ache aid drug Tylenol and its namesake child powder.
The unit raked in $15 billion in web income in 2022 alone. During the primary quarter of 2023, the enterprise generated $3.8 billion in gross sales. That represents greater than 7% development over the identical three-month interval final 12 months, in accordance to J&J’s earnings report final week.
The firm mentioned it believes the enterprise “empowers” about 1.2 billion individuals to “dwell more healthy lives” daily.
Thibaut Mongon, J&J’s govt vp and worldwide chair of consumer well being, will function CEO and director of Kevnue prior to the completion of the IPO, the corporate mentioned in the submitting.
Paul Ruh, J&J’s chief monetary officer of consumer well being and a former PepsiCo govt, will grow to be the CFO of Kenvue earlier than the providing is accomplished.
