J&J reveals IPO rates for customer spinoff Kenvue

J&J announces IPO prices for consumer spinoff Kenvue

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Johnson & &(************************************************************************************* )items for sale in New York.

Scott Mlyn|CNBC

Johnson & &Johnson (******************* )will price shares of its consumer-health spinoffKenvue at$20 to$23 in a going public later on this year, the business stated in a regulative filing Monday.

The spinoff, which would be valued at around $40 billion at that share variety, might be the biggest IPO in a suppressed U.S. market for such offerings year to date.

J&J stated it released a roadshow for the IPO of more than 151 million shares of typical stock. Kenvue prepares to consult with potential financiers as early as Monday, sources knowledgeable about the matter informed The Wall Street Journal.

Kenvue approximates the IPO will produce net profits of around $3.15 million, the filing stated. Those profits and any benefit from associated debt-financing deals will go to J&J.

Goldman Sachs, JPMorgan Chase and Bank of America are the leading underwriters for the IPO, the business stated in its initial prospectus submitted with the Securities and Exchange Commission.

Kenvue anticipates to give underwriters a 30- day choice to acquire approximately an extra 22.6 million shares of stock to cover any over-allotments, according to the filing.

J&J formerly stated it anticipates to finish the separation from Kenvue by mid- to late 2023.

The business noted it will own 1.7 billion shares of Kenvue’s typical stock after the IPO, representing 91.9% of the spinoff’s overall shares. Last year, J&J stated it will minimize the rest of its stake in Kenvue later on in the year.

Kenvue would trade on the New York Stock Exchange under the stock ticker KVUE.

J&&(************************************************************************************** )consumer-health organization makes Band-Aid plasters, Listerine mouth wash, skin care items under the brand Neutrogena and Aveeno, discomfort relief drug Tylenol and its name talcum powder.

The system generated $15 billion in net earnings in 2022 alone. During the very first quarter of 2023, business produced $3.8 billion in sales. That represents more than 7% development over the very same three-month duration in 2015, according to J&&(************************************************************************************** )revenues report recently.

The business stated it thinks business “empowers” about 1.2 billion individuals to “live healthier lives” every day.

Thibaut Mongon, J&&(************************************************************************************** )executive vice president and around the world chair of customer health, will act as CEO and director of Kevnue prior to the conclusion of the IPO, the business stated in the filing.

Paul Ruh, J&&J’s primary monetary officer of customer health and a previous PepsiCo executive, will end up being the CFO of Kenvue prior to the offering is finished.