In a larger initial public offering, Johnson & Johnson’s consumer arm Kenvue was valued at $41 billion, making it the largest US listing in nearly 18 months. According to sources, the carved-out company sold stock worth $3.7 billion at a price of $22 per share, which was slightly higher than the middle of its price range. On Thursday, the stock will start trading on the New York Stock Exchange.
J&J on the Rise
This deal, which will more than double the amount raised by traditional US listings this year, is the largest since Rivian’s IPO in November 2021. Kenvue produces over-the-counter prescriptions and brands, for example, Tylenol pain relievers, Listerine mouthwash, and Aveeno skin health management items.
In 2022, it reported $15 billion in revenue and a pro forma net income of $1.5 billion. It additionally creates J&J’s child powder items, which have been at the focal point of long stretches of fights in court about whether they caused disease, and the new organization has proactively been designated in claims. On the Kenvue offer, J&J could not immediately be reached for comment.
J&J has agreed to protect Kenvue from any legal fees associated with sales of baby powder in the United States and Canada. J&J will continue to own more than 90% of Kenvue’s shares. However, Kenvue stated in its prospectus that it “cannot assure” investors that its parent’s indemnity would be sufficient, and that it is also subject to claims for sales in other nations.
Since early 2022, a combination of rising interest rates, volatile stock markets, and pessimistic economic forecasts have engulfed the US IPO market in one of its longest slowdowns in decades. According to data from Dealogic, only $2.4 billion had been raised this year through traditional IPOs prior to the deal on Wednesday.