J&J to Raise About $3.5 Billion in Kenvue Spinoff
- Chaileedo Press
- Apr 25, 2023
- 2 min read
Updated: Jul 4, 2023
Johnson & Johnson has announced that its subsidiary, Kenvue Inc., which includes its Consumer Health Business, has started a roadshow for its IPO with a price range of $20 to $23 per share and to raise about $3.5 billion.
Johnson & Johnson has announced that its subsidiary, Kenvue Inc., which includes its Consumer Health Business, has started a roadshow for its IPO.
Johnson & Johnson has initiated a roadshow for its upcoming initial public offering, which will involve selling 151,204,000 shares of common stock. And Kenvue is planning to give the underwriters a 30-day option to buy up to 22,680,600 additional shares of its common stock to cover any over-allotments.
Johnson & Johnson said Kenvue has filed an application to list its common stock on the New York Stock Exchange under the ticker symbol "KVUE" and is anticipating an IPO price range of $20 to $23 per share.
The spinoff, with an estimated valuation of approximately $40 billion at the given share price range, has the potential to become the biggest initial public offering in the US market for such offerings so far this year, given the subdued market conditions.
In November 2021, Johnson & Johnson revealed its plan to spin off its Consumer Health division into a new public company.
Johnson & Johnson pointed out that Kenvue is inspired by two powerful ideas: “ken” – meaning knowledge, an English word primarily used in Scotland, and “vue,” referencing sight. With rich knowledge of human needs and deep consumer insights, Kenvue will deliver meaningful, personal health solutions.
In terms of business, Kenvue has a total of 44 brands, including four major brands with revenue exceeding $1 billion and 20 brands with revenue over $150 million. The overall business is divided into three segments.
Skin Health and Beauty segment, product categories include face and body care and hair, sun, and other. Major brands in the segment include Neutrogena, Aveeno, and OGX.
Essential Health segment, product categories include oral care, baby care, and other essential health (women’s health and wound care). Major brands in the segment include Listerine, Johnson’s, Band-Aid, and Stayfree.
In the Self Care segment, product categories include cough, cold, and allergy, pain Care; and other self-care (digestive health, smoking cessation, and other). Major brands in the segment include Tylenol, Nicorette, and Zyrtec.
Johnson & Johnson said after the completion of the IPO, Johnson & Johnson will own 1,716,160,000 shares of Kenvue’s common stock, representing 91.9% of the total outstanding shares of Kenvue’s common stock (or 90.8% if the underwriter's exercise in full their over-allotment option).
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