HQ Team
May 5, 2023: Kenvue Inc, the hived-off consumer arm of Johnson & Johnson, was listed on the New York Stock Exchange on May 4, for $22 per share, according to a statement from the two companies. The companies are selling more than 172 million shares to the public, pricing the offering at around $41 billion.
The IPO is expected to close on May 8, 2023, subject to the satisfaction or waiver of customary closing conditions.
Johnson & Johnson will own 1,716,160,000 shares of Kenvue’s common stock, representing 90.9% of the total outstanding shares of Kenvue’s common stock post-IPO.
The Kenvue listing is the biggest IPO on NY exchange in the last 18 months. Electric vehicle maker Rivian was the last big listing in November 2021. Kenvue IPO will more than double the sum raised in traditional US listings this year.
Johnson & Johnson and lawsuits
Kenvue owns brands such as Tylenol painkillers, Listerine mouthwash, and Aveeno skin care products. It also produces J&J’s baby powder products, which are facing lawsuits over cancer concerns, and the new company has already been targeted in lawsuits.
It reported revenue of $15bn and net income of $1.5bn in 2022.
J&J owns a 90% share in Kenvue and has agreed to cover any legal costs related to baby powder sales in the US and Canada. However, Kenvue’s prospectus clearly states that it “cannot assure” investors that the indemnity from its parent would cover all claims costs.
J&J went public with plans to hive off its consumer division in late 2021. The separation was completed in September 2022, with the announcement of the standalone consumer company as Kenvue.
Goldman Sachs, J.P. Morgan, and BofA Securities are joint underwriters for the IPO.
Another anticipated IPO from the biopharma industry is that of Acelyrin, which specializes in inflammatory diseases. It is looking to raise up to $477mn at a valuation of up to $1.6bn. The biotech sector has been affected by the pandemic, with no new listings done in the last one and a half years due to the funding freeze, which has hampered any new innovations and developments.
