NEW YORK, May 3 (Reuters) – Johnson & Johnson (JNJ.N) has priced the IPO of its consumer health business Kenvue Inc (KVUE.N) at the top end of its target range to raise $3.8 Billion.
The company will list about 172.8 million shares at $22 per share, J&J and Kenvue said in a joint statement on Wednesday.
The IPO values Kenvue at approximately $41 billion.
Kenvue previously announced it would sell 151 million shares at a price of between $20 and $23 per share.
Kenvue’s stock sale marks the largest IPO resulting from a corporate spin-off in over two decades.
J&J will control about 91% of Kenvue’s stock after the listing and own just over 1.7 billion shares.
Reuters was the first to report that Kenvue’s IPO will cost $22 per share.
While the Kenvue deal is the largest IPO launched since electric vehicle maker Rivian Automotive Inc (RIVN.O) listed its shares on Nasdaq in late 2021, deal advisors have warned stock markets may not bounce anytime soon will recover significantly.
The IPO market has been largely frozen for the past year as stock market volatility and economic uncertainty have scared off many hopefuls.
U.S. IPOs, excluding special purpose acquisition company listings, are down about 22% to total just $2.35 billion year-to-date, according to Dealogic.
Kenvue is expected to start trading on the New York Stock Exchange on Thursday under the ticker “KVUE.”
Goldman Sachs, JPMorgan Chase and Bank of America are acting as lead underwriters for the IPO.
Reporting by Echo Wang in New York; Editing by Anirban Sen
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