J&J to float less than 10% stake in Kenvue

Johnson & Johnson (J&J) plans to list just under 10% of its consumer health products division in an IPO.

J&J will put up for sale 151.2 million shares of a new company called Kenvue Inc.

According to a J&J press release, Kenvue shares will be placed at $20-23. Thus, the volume of the IPO may range from $3.02 billion to $3.48 billion.

Kenvue plans to give the organizers of the IPO an option to additionally place another 22.681 million shares.

Kenvue shares will be traded on the New York Stock Exchange (NYSE) under the ticker “KVUE”.

Upon completion of the placement, J&J will retain 91.9% of Kenvue (90.8% if the additional placement option is fully exercised).

J&J announced plans to spin off its consumer healthcare operations as early as November 2021. The division’s product portfolio includes, for example, Neutrogena creams, Band-Aid patches, Listerine mouthwash, paracetamol analogue Tylenol, and Johnson’s Baby product line.

In 2022, the division’s revenue reached $14.95 billion, which accounted for about 15.7% of all J&J sales.