Renaissance Capital logo

J&J spin-off Kenvue sets terms for $3.3 billion IPO; set to be the largest US IPO since 2021

April 24, 2023

Kenvue, the consumer health products unit spun out of J&J, announced terms for its IPO on Monday.

The Skillman, NJ-based company plans to raise $3.3 billion by offering 151.2 million shares (100% synthetic secondary) at a price range of $20 to $23. At the midpoint of the proposed range, Kenvue would command a fully diluted market value of $40.6 billion. The company expects to pay a quarterly dividend starting in the 3Q23.

At $3.3 billion, Kenvue's IPO would be the largest since EV maker Rivian (RIVN) in November 2021. It is expected to more than double the total US IPO proceeds raised year-to-date.

Kenvue states that it is the world's largest pure-play consumer health company by revenue, operating across three segments: self care, skin health and beauty, and essential health. Its differentiated portfolio of well-known brands includes Tylenol, Band-Aid, Neutrogena, Aveeno, Nicorette, Zyrtec, and Listerine, among others. Ten of its brands had over $400 million in net sales in 2021, and the company currently holds seven #1 brand positions across major categories globally, in addition to many #1 brand positions locally. Kenvue has a global footprint, and approximately half of 2022 net sales were generated outside North America.

Kenvue traces its roots to 1886 and booked $15.0 billion in revenue for the 12 months ended January 1, 2023. It plans to list on the NYSE under the symbol KVUE. Goldman Sachs, J.P. Morgan, BofA Securities, Citi, Deutsche Bank, BNP Paribas, HSBC, RBC Capital Markets, and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of May 1, 2023.