Johnson & Johnson products on the market in Recent 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 yr, the corporate said in a regulatory filing Monday.
The spinoff, which could be valued at around $40 billion at that share range, might be the most important IPO in a subdued U.S. marketplace for such offerings yr so far.
related investing news
J&J said it launched a roadshow for the IPO of greater than 151 million shares of common stock. Kenvue plans to satisfy with prospective investors as early as Monday, sources accustomed to the matter told The Wall Street Journal.
Kenvue estimates the IPO will generate net proceeds of around $3.15 million, the filing said. Those proceeds and any profits from related debt-financing transactions will go to J&J.
Goldman Sachs, JPMorgan Chase and Bank of America are the leading underwriters for the IPO, the corporate said in its preliminary prospectus filed with the Securities and Exchange Commission.
Kenvue expects to grant underwriters a 30-day choice to purchase as much as an extra 22.6 million shares of stock to cover any over-allotments, in accordance with the filing.
J&J previously said it expects to finish the separation from Kenvue by mid- to late 2023.
The corporate noted it is going to own 1.7 billion shares of Kenvue’s common stock after the IPO, representing 91.9% of the spinoff’s total shares. Last yr, J&J said it is going to reduce the remaining of its stake in Kenvue later within the yr.
Kenvue would trade on the Recent York Stock Exchange under the stock ticker KVUE.
J&J’s consumer-health business makes Band-Aid bandages, Listerine mouth wash, skincare products under the brand names Neutrogena and Aveeno, pain relief drug Tylenol and its namesake baby powder.Â
The unit raked in $15 billion in net revenue in 2022 alone. Throughout the first quarter of 2023, the business generated $3.8 billion in sales. That represents greater than 7% growth over the identical three-month period last yr, in accordance with J&J’s earnings report last week.
The corporate said it believes the business “empowers” about 1.2 billion people to “live healthier lives” every single day.
Thibaut Mongon, J&J’s executive vice chairman and worldwide chair of consumer health, will function CEO and director of Kevnue prior to the completion of the IPO, the corporate said within the filing.
Paul Ruh, J&J’s chief financial officer of consumer health and a former PepsiCo executive, will grow to be the CFO of Kenvue before the offering is accomplished.
