Johnson & Johnson plans to launch an initial public offering for Kenvue Inc., a wholly owned subsidiary comprising its Consumer Health business, later this year.
The company aims to raise up to $3.5 billion in the IPO, which comes at a time of muted public offerings in the U.S.
J&J’s Consumer Health activity involves self care, skin health and beauty, and essential health brands, including Neutrogena, Aveeno, Dr. Ci:Labo, NeoStrata, OGX, Dabao and Le Petit Marseillais.
J&J, which just launched a roadshow for the IPO, is offering 151.2 million shares of common stock of Kenvue, which are priced between $20 and $23 per share.
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J&J said that it expects to grant the underwriters a 30-day option to buy up to an additional 22.7 million shares of its common stock to cover over-allotments, if there are any.
Kenvue would be valued at up to $43.5 billion.
Kenvue’s common stock is expected to list on the New York Stock Exchange under the symbol KVUE.
Once the IPO takes place, J&J will own 1.72 billion shares of Kenvue’s common stock, or 91.9 percent of the total outstanding share of its common stock. If the underwriters exercise their full over-allotment option, it would own 90.8 percent.
Goldman Sachs & Co., J.P. Morgan and BofA Securities are jointly acting as lead book-running managers for the IPO.
Citigroup, Deutsche Bank Securities, BNP Paribas, HSBC, RBC Capital Markets and UBS Investment Bank are book-running managers for the IPO, while BBVA, ING, IMI – Intesa Sanpao, Santander, UniCredit Capital Markets, Academy Securities, Independence Point Securities, Ramirez & Co., R. Seelaus & Co. and Siebert Williams Shank are acting as co-managers.
J&J’s total Consumer Health Sales came in at $15 billion in 2022, up 2.7 percent against 2021.
The company announced its plans to carve out its Consumer Health business in 2021. In May 2022, the company named Thibaut Mongon and Paul Ruh as its designate chief executive officer and chief financial officer, respectively.
Also last year, it was announced the spin-off company would be called Kenvue and was expected to launch in 2023.
Other main brands in Kenvue include Bebe, Biafine, Clean & Clear, Piz Buin, Sundown, Maui Moisture and Rogaine.