Kenvue, Johnson & Johnson’s consumer health business, is set to launch their IPO this week. The initial public offering will be the biggest in the US since November 2021.
The IPO Details
Kenvue is expected to sell more than 151 million shares at between $20 and $23 each. The company aims to raise approximately $3.25 billion at the midpoint price of $21.50. The IPO price will be set on Wednesday night and trading will begin on Thursday morning on the New York Stock Exchange under the ticker “KVUE”.
Kenvue’s Business and Future Growth
Kenvue’s business includes many well-known household names such as Tylenol, Band-Aid, and Listerine. The company is projected to have modest growth over the next few years, with an estimated global sales growth of 3% to 4% through 2025. The company’s three business divisions, including self-care, skin health and beauty products, and essential health, were all profitable on an adjusted operating income basis.
The Leadership Team and Headquarters
Kenvue’s leadership team includes executives from Johnson & Johnson, including Thibaut Mongon as CEO, Paul Ruh as CFO, and Meredith Stevens as COO. The company’s global headquarters will be located in Summit, New Jersey. Kenvue will have a team of more than 22,000 employees across 165 countries and 25 in-house manufacturing sites.
Talc-Related Liabilities
While Johnson & Johnson faces thousands of allegations that its talc baby powder and other talc products caused cancer, Kenvue will assume only talc-related liabilities that arise outside the US and Canada. Johnson & Johnson will continue battling talc claims in bankruptcy court.
The spinoff of Kenvue is the largest restructuring in Johnson & Johnson’s 135-year history. While the IPO may not completely turn around the struggling IPO market, it may be a sign of life for initial public offerings in the US. Kenvue’s debut would be a significant step for the company, which is expected to be valued at around $40 billion at the proposed share range.
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