Sales of Johnson & Johnson products in Recent York.
Scott Mill | CNBC
Johnson & Johnson will value shares in its consumer health spin-off Kenvue at $20 to $23 in an initial public offering later this 12 months, the corporate said in Monday’s regulatory filing.
The split, which could be valued at around $40 billion on this range of shares, may very well be the most important IPO within the subdued US market for such offerings a 12 months so far.
J&J said it has began a roadshow with an IPO of over 151 million common shares. Kenvue plans to satisfy with potential investors on Monday, sources conversant in The case said Wall Street Journal.
Kenvue estimates the IPO will generate net proceeds of roughly $3.15 million. These 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 IPO insurers, the corporate said in its report preliminary prospectus filed with the Securities and Exchange Commission.
Kenvue expects to grant underwriters a 30-day call option for an extra 22.6 million shares to cover any over-allotments as requested.
J&J previously said it expects to finish its separation from Kenvue by mid or late 2023.
The corporate noted that after the IPO, it should own 1.7 billion shares of Kenvue common stock, representing 91.9% of the spinoff’s total shares. Last 12 months, J&J said it would scale back the remainder of its holdings in Kenvue later this 12 months.
Kenvue would trade on the Recent York Stock Exchange under the ticker symbol KVUE.
J&J’s consumer health company produces bandage bandages, Listerine mouthwash, skincare products under the brand names Neutrogena and Aveeno, painkiller Tylenol and baby powder of the identical name.
The unit earned $15 billion in net revenue in 2022 alone. In the primary quarter of 2023, the corporate generated sales of $3.8 billion. This represents a rise of greater than 7% over the identical three-month period last 12 months, in response to last week’s J&J earnings report.
The corporate said it believed the business “enables” around 1.2 billion people to “live healthier lives” each day.
Thibaut Mongon, executive vp of J&J and global chairman of consumer health, will function chief executive officer and director of Kevnue prior to the completion of the initial public offering, the corporate said in a filing.
Paul Ruh, J&J’s chief financial officer for consumer health and former PepsiCo chief executive, will turn out to be Kenvue’s chief financial officer prior to the tip of the offering.