Johnson & Johnson (NYSE: JNJ) carving out the consumer healthcare business, Kenvue Corporation, Priced Its doubled initial public offering of 172.8 million shares at $22.00 per share. Kenvue’s IPO is estimated at $41 billion.
The offering is priced at the higher end of the $20-$23 target range, with about 10% equity. Sold out planned.
Kenvue has given the underwriters the option to buy up to 25.9 million shares.
Kenvue’s common stock has been approved for listing on the New York Stock Exchange under the symbol “KVUE” and is expected to begin trading on May 4.
After the listing, J&J will control about 91% of Kenvue’s shares, and will own just over 1.7 billion.
The debut of Kenvue also marks the largest restructuring in J&J’s 135-year history. J&J announced the split in late 2021 to streamline and refocus operations Pharmaceutical and medical device departments.
Kenvue products include several J&J brands, including Tylenol, Listerine, Neutrogena, and Nicorette.
On a pro forma basis, the company generated net income of approximately $1.45 billion on sales of $14.95 billion for the year ending January 1, according to its SEC filing.
Kenvue stock sale marks the largest IPO resulting from a company takeover in more than two decades, Reuters reports mentioned. It’s the largest initial public offering to take place since the electric carmaker Rivian Motor Company (NASDAQ: countryside) will be released to the public in 2021.
price action: Shares of JNJ fell 0.67% to $161.79 on Thursday’s last check.
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