Johnson & Johnson Spinoff Kenvue Valued at $41 Billion in IPO

Johnson & Johnson’s consumer healthcare spinoff has made the biggest U.S. initial public offering (IPO) since 2021.

Kenvue, which includes Band-Aid and several other well-known consumer brands that had been part of Johnson & Johnson, raised $3.8 billion in an IPO that valued it at $41 billion Thursday (May 4), CNBC reported Thursday.

That was the biggest IPO since electric vehicle manufacturer Rivian’s IPO in November 2021, according to the report.

Kenvue opened at $25.53 per share Thursday morning, a price 16% higher than the $22 at which the company had priced its shares Wednesday (May 3), the report said.

The company said in a press release issued Thursday, before the IPO, that it is “the world’s largest pure-play consumer health company by revenue” and that it is focused on helping consumers with “everyday care.”

Together with Band-Aid, the other brands belonging to Kenvue include Aveeno, Johnson’s, Listerine, Neutrogena, Tylenol and Zyrtec, according to the release.

“As a global leader at the intersection of healthcare and consumer goods, our carefully curated portfolio of science-backed, iconic brands has been trusted by consumers and recommended by healthcare professionals for generations,” Kenvue CEO Thibaut Mongon said in the release.

The Wall Street Journal (WSJ) reported April 23 that Johnson & Johnson’s attempt to take Kenvue public would be a key test for the flagging IPO market.

Citing figures from Dealogic, WSJ said traditional IPOs had raised just $2.3 billion in the U.S. this year, up to that time, marking the worst beginning to a year since 2009.

Investors have been scared off by inflation and high interest rates and have avoided high-growth firms, according to the report.

During Johnson & Johnson’s most recent earnings call, Chief Financial Officer Joseph Wolk said the company had been operating its consumer health business “as a company within a company” since the start of the year and that the then-upcoming spinoff would position both companies to be “more agile, focused and competitive.”

“We’re also expecting a number of pipeline advancements that will provide increased confidence in our pharmaceutical and MedTech businesses,” Wolk said at the time.