Kenvue Stock Initial Public Offering (IPO)

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Johnson & Johnson (J&J) filed for IPO with the Securities and Exchange Commission on January 4, 2023.

Shares price of its consumer-health spinoff Kenvue will be at $20 to $23 in an initial public offering later this year.

The common stock will be listed on the New York Stock Exchange (the “NYSE”) under the symbol “KVUE”.

The company has started roadshow for the launch.

IPO Details

Kenvue IPO offers 151,204,000 shares of its common stock

IPO price will be between $20.00 and $23.00 per share

Will be listed on the New York Stock Exchange under the symbol “KVUE.”

Johnson & Johnson will own 1,716,160,000 shares of Kenvue’s common stock (91.9%)

Share Holding Pattern After IPO

Goldman Sachs & Co. LLC, J.P. Morgan and BofA Securities are lead running book managers

The IPO will generate net proceeds of around $3.15 million

To pay for the  Business that Johnson & Johnson is transferring to Kenvue Inc. in connection with the Separation.

Kenvue raised US$7.75bn on 8th March 2023, from its inaugural bond offering prior to the initial public offering.

Utilization of Net Proceeds

Kenvue is the largest pure-play consumer health company by revenue with $15.1 billion in net sales in 2021.

Ten of its brands had over $400 million in net sales in 2021. 

The company currently holds five #1 brand positions across major categories globally 

About Kenvue

Kenvue Inc. (“Kenvue”), a wholly-owned subsidiary of Johnson & Johnson Spin-off)

Manufactures of pure-play consumer healthcare products

Product Categories and Revenue Percent

Kenvue presents across the regions. Over half of its net sales were generated outside North America in 2021.

Net sales increased from $14.3 billion to $15.1 billion

From 2019-2021

Net income increased from $1.4 billion to $2.0 billion

In Addition, the company has also reported

Adjusted EBITDA increased from $3.4 billion to $3.9 billion

Adjusted net income increased from $2.2 billion to $2.8 billion

Net cash flow from operating activities increased from $ 2.99 billion to $3.4 billion

After the IPO, J&J will retain at least 80.1% of Kenvue's shares but plans to distribute that stake to its own shareholders.

Thibaut Mongon is the Chief Executive Officer and Director of the company 

Luani Alvarado is the Chief Financial Officer of the company.

The consumer health market is expected to grow at a CAGR of 4% globally from 2022 to 2025.

J&J is one of the well-known brand worldwide.

Do you invest?

Global leader in healthcare and consumer goods

Strong parental – “Jonson and Jonson” 

Presence across product categories and geographics 

Kenvue’s products are available in over 165 countries and 25 in-house manufacturing facilities

Recession-resistant business with hefty cashflows.

Actively expanding through acquisitions toward high-growth and high-margin businesses. 

I would love to invest in the company for the long term

Additional Factors 

JnJ stock has been performing consistently over the last 5 years

Kenvue Stock will perform well in long term.

Parent Company Performance in Stock Market

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