Consumer Health Spinoff

Johnson & Johnson continues to face charges that some of its talc products are carcinogenic, notwithstanding the success of Kenvue’s initial public offering.

Johnson & Johnson’s (NYSE: JNJ) consumer-health spinoff Kenvue went public on Thursday, making it the largest IPO in the United States in over a year. In the same day that the Kenvue brand name appeared on the NYSE, shares of J&J jumped by 22 percent. The initial public offering (IPO) price for a night at Kenvue was $22. Shares of the startup company started trading at $25.53 and ended the day at $26.90.

Kenvue Become Largest United States IPO in Over a Year

During its IPO, Kenvue sold more than 172.8 million shares, much beyond the initial plan of 151 million. It made around $3.8 billion in the deal, bringing the total value of the company to almost $41 billion. Now that it’s available to the public, Kenvue trades under the symbol “KVUE” and includes protection for several well-known consumer brands including Neutrogena, J&J’s talcum powder brand, Band-Aid, Listerine, Tylenol, and Aveeno.

Before the launch on Thursday, Kenvue CEO Thibaut Mongon said that he was certain that millions of people across the world already have at least one of the company’s products at home. Previously, Mongon served as the executive vice president and global head of consumer health at J&J. He will now be a board member of Kenvue.

Remarkably, Kenvue has been profitable even before it went public. The J&J subsidiary generated $14.95 billion in revenue and $1.46 billion in pro forma earnings in 2022, per documents filed with the United States Securities and Exchange Commission (SEC).

Its earnings for the first quarter amounted to about $330 million on revenues of about $3.85 billion. To achieve its long-term goal of a 3-4% annual increase in global sales by 2025, the company prioritises these results.

Johnson & Johnson continues to face charges that some of its talc products are carcinogenic, notwithstanding the success of Kenvue’s initial public offering. These products are registered with J&J’s new service, Kenvue. The IPO filing shows that the spinoff would only respond to liabilities outside of the US and Canada that are connected to talc.

When asked about the risks, Mongon said, “laser-focused on what we do finest: serving our clients and likewise our portfolio with the brand names that we discussed.”

Kenvue Rejuvenate Hope in Collapsing Market

The IPO market in the United States crashed in 2015, but hopes have been revived thanks to Kenvue’s debut. Renaissance Capital claims that the company’s IPO is the year’s largest so far. In 2023, the total value of the 40 IPOs is over $2.4 billion, which is up by more than $1 billion compared to Kenvue.

Rivian, an electric truck manufacturer, went public in November 2021, and since then, no IPO has been more successful. The price of a share of Rivian (RIVN) stock rose by more than 50% in value, from $78 to $106.75. Kenvue is now the largest IPO ever, surpassing Rivian in the process.

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Ibukun is a crypto/finance writer that wants to get the right message through to the right people by using simple language. She enjoys writing, but also going to the movies, cooking, and trying new restaurants in her hometown of Lagos.

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