J&J’s Spin-off Kenvue Lists for IPO in Healthcare Giant Split

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As markets open for the new year, a mega breakup that could shake up the consumer healthcare market is coming down the initial public offering (IPO) pipeline. 

Johnson & Johnson (J&J) is moving forward to spin off its consumer healthcare unit, Kenvue, in what could be one of the biggest offerings for early 2023.

Kenvue filed with the Securities and Exchange Commission (SEC) on January 4. It has not yet announced a date for the launch but plans to list on the New York Stock Exchange (NYSE) under “KVUE.”

Kenvue did not disclose numbers regarding total units on offer or initial pricing, but its filing fee schedule states it aims to raise $100 million through the deal. This figure is likely to be a placeholder sum, and the deal could raise as much as $5 billion, according to Renaissance Capital.

The breakup of the New Jersey-based health titan may be a game changer for the sector. With a 135-year-old history, Johnson & Johnson's consumer health division boasts a long list of iconic brands from Band-Aid, Listerine, Nicorette, and Neutrogena.

Once the IPO is complete, this division – rebranded as Kenvue – will be the world's largest pure-play consumer health company.

It has seen strong sales during the pandemic, generating $14.5 billion in revenue in 2020, $15.1 billion in 2021, and $11.18 billion for the first three quarters of 2022. Yet just because the conglomerate is letting Kenvue out into public markets doesn't mean it will relinquish parental control of its newly-formed subsidiary.

J&J will hold on to at least 80.1% of the voting power of Kenvue shares post-spin-off.

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