Johnson & Johnson consumer arm valued at $41bn in biggest US IPO since 2021
Kenvue, the consumer arm of healthcare giant Johnson & Johnson, was valued at $41bn in an upsized initial public offering that marked the biggest US listing in almost 18 months.
The carved-out company sold $3.7bn of stock at a price of $22 per share — slightly above the middle of its price range, according to a person familiar with the details. The stock will begin trading on the New York Stock Exchange on Thursday.
Kenvue is unusual among IPO candidates in that it is profitable, backed by a large parent group, and plans to pay a $1.5bn annual dividend. As such, most bankers do not expect it to trigger an immediate surge in further listings, but the deal is nonetheless being closely watched across Wall Street as a test of investor confidence.
“It’s pretty idiosyncratic, but . . . I think it’s a good sign,” said a senior executive at a bank that did not work on the deal.
Goldman Sachs, JPMorgan Chase and Bank of America were lead underwriters on the listing.
This story originally appeared on: Financial Times - Author:Jamie Smyth
