Healthcare giant Johnson & Johnson’s consumer health business’s IPO is expected to be one of the marquee rosters of 2023 – the Kenvue IPO of more than 151 million shares. J&J’s Kenvue IPO’s announcement of soliciting at least a valuation up to $42.95 billion is deducible to the sotto voce appetite of investors.
J&J’s consumer health IPO accomplishes the healthcare product maker’s expedient spinoff dispositioning from its well-known products like Band-Aids, Listerine, skin care under Neutrogena and Aveeno, pain-relief drug Tylenol and its controversial namesake baby powder. The company announced in 2021 its plans of splitting J&J’s consumer health division from its pharmaceutical and medical device divisions, in an attempt for dexterity.
J&J Kenvue’s IPO Roadshow: Game Plan For The Consumer Health IPO
While the New Jersey-based company will still hold prepotence for more than 90 percent of Kenvue’s stock offering after the IPO, Johnson & Johnson expects the price of Kenvue’s per-share IPO to range between $20 – $23.
J&J’s consumer products IPO is geared to offering 151.2 million shares of Kenvue shares with the desideratum of raising $3.5 billion, based on the proposed range’s top-end.
J&J’s stock offering is expected to launch the Kenvue IPO by the end of 2023, with the ticker symbol KVUE under the hat of approval of the New York Stock Exchange. Kenvue’s IPO Roadshow involves inviting potential investors to inveigle them into pumping funds ahead of the offering.
Johnson & Johnson’s Kenvue IPO: A Beacon Of Hope In Daunting Times
Kenvue’s net sales had dwindled marginally to $14.95 billion in the fiscal year of 2022. Among the larger US corporations superintending to simplify and refurbish their structures to focus on the moolah-making units are Johnson & Johnson, Kellogg Co, and General Electric.
In April, J&J’s subsidiary LTL Management filed for bankruptcy for the second time, agreeing to tip the previous balance of $2 billion to dole out $8.9 billion to settle talcum cancer lawsuits. As if these problems weren’t copious, J&J’s Kenvue IPO plan has arrived on the shores of heightened volatility amidst rising interest rates, as investors wage wars with the new listings that have come to a virtual standstill in the IPO market in the United States.
“Quite an important deal in restarting the US IPO market, a positive reception for Kenvue’s IPO would throttle forward the companies waiting in the wings with their listings.”
While the movement of initial public offerings has been lackadaisical in the last year, Johnson & Johnson’s Kenvue IPO is audacious and poised to dip its toes in testing waters.
WSJ notes that if the spinoff goes successful, it could be ‘the biggest of what has been a divergently quiet year for IPOs’, opening the doors for companies holding off from listing stock due to the unpredictable economy. Kenvue’s stock offering could become the biggest debut on New York Stock Exchange since the dismal 2021-2022, with the market anxiously anticipating a fresh enthrall through a languid first quarter.
