JnJ seeks valuation of up to USD 43 billion in IPO of consumer health unit Kenvue

Published On 2023-04-25 09:16 GMT   |   Update On 2023-04-25 09:16 GMT
Advertisement

New Jersey: Johnson & Johnson said on Monday it was seeking a valuation of up to $42.95 billion in the initial public offering of its consumer health unit, Kenvue, at a time when investor appetite for new listings has been muted.

The announcement sets the stage for what is expected to be one of the marquee listings this year and brings the healthcare conglomerate closer to completing its planned spinoff of the business behind Band-Aid bandages and Tylenol medicines.

Advertisement

However, the listing plans come at a challenging time for the IPO market in the United States. New listings have come to a virtual standstill as investors grapple with heightened volatility in a rising interest rate environment.

J&J is offering 151.2 million shares of the common stock of Kenvue priced between $20 and $23 per share, aiming to raise up to $3.5 billion, based on the top end of the proposed range of the listing.

"It's definitely an important deal in restarting the U.S. IPO market," said Matthew Kennedy, senior IPO market strategist at Renaissance Capital.

"We do see other companies waiting in the wings, and a positive reception for Kenvue would certainly encourage them to move forward with their listings."

Kenvue's net sales fell marginally to $14.95 billion in the fiscal year ended Jan. 1.

J&J, Kellogg Co and General Electric Co were among the large U.S. corporations that in recent years have laid out plans to spin off units to simplify their structures and focus on specific money-making areas.

In April, J&J spin-off LTL Management filed for bankruptcy for a second time under a new financing arrangement with J&J. The drugmaker has agreed to pay $8.9 billion, dwarfing its original offer of $2 billion, to settle tens of thousands of lawsuits.

Goldman Sachs and J.P. Morgan are among the underwriters for Kenvue's listing.

Read also: Johnson and Johnson may eye deals that boost eye care, surgical robots businesses: CEO Joaquin Duato

Tags:    
Article Source : Reuters

Disclaimer: This website is primarily for healthcare professionals. The content here does not replace medical advice and should not be used as medical, diagnostic, endorsement, treatment, or prescription advice. Medical science evolves rapidly, and we strive to keep our information current. If you find any discrepancies, please contact us at corrections@medicaldialogues.in. Read our Correction Policy here. Nothing here should be used as a substitute for medical advice, diagnosis, or treatment. We do not endorse any healthcare advice that contradicts a physician's guidance. Use of this site is subject to our Terms of Use, Privacy Policy, and Advertisement Policy. For more details, read our Full Disclaimer here.

NOTE: Join us in combating medical misinformation. If you encounter a questionable health, medical, or medical education claim, email us at factcheck@medicaldialogues.in for evaluation.

Our comments section is governed by our Comments Policy . By posting comments at Medical Dialogues you automatically agree with our Comments Policy , Terms And Conditions and Privacy Policy .

Similar News