Johnson & Johnson to price shares of consumer spinoff Kenvue at $20 to $23 in IPO

Johnson & Johnson will price shares of its consumer health spinoff Kenvue at $20 to $23 in an initial public offering later this year, the company said in a regulatory filing Monday.

The spinoff, which would be valued at around $40 billion at that share range, could be the largest IPO in a so far subdued U.S. market for such offerings this year.

J&J said it launched a roadshow for the IPO of more than 151 million shares of common stock.

Goldman Sachs, JPMorgan Chase and Bank of America are leading managers for the IPO, the company said in its preliminary prospectus filed with the Securities and Exchange Commission.

Kenvue expects to grant underwriters a 30-day option to purchase up to an additional 22.6 million shares of stock to cover any over-allotments, according to a J&J press release.

J&J previously said it expects to complete the separation from Kenvue by mid- to late 2023.

The company noted it will own 1.7 billion shares of Kenvue’s common stock after the IPO, representing 91.9% of the spinoff’s total shares. J&J previously said it will reduce the rest of its stake in Kenvue later in the year.

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

J&J’s consumer health business makes Band-Aid bandages, Listerine mouth wash, skin care products under the brands Neutrogena and Aveeno, pain relief drug Tylenol and the company’s baby powder. 

The unit raked in $15 billion in net revenue in 2022 alone. During the first quarter of 2023, the business generated $3.8 billion in sales.

J&J said it believes the business “empowers” approximately 1.2 billion people to “live healthier lives” every day.

Thibaut Mongon, J&J’s executive vice president and worldwide chairman of consumer health, will serve as CEO and director of Kevnue prior to the completion of the IPO, the company said in the filing.

Paul Ruh, J&J’s chief financial officer of consumer health and a former PepsiCo executive, will become the CFO of Kenvue before the offering completes.