Johnson & Johnson (NYSE:JNJ)'s consumer health unit Kenvue Inc just priced the biggest US IPO since 2021, in a spot of welcome news for capital markets.
The spinoff is expected to achieve a valuation of $47 billion when it debuts on the NYSE on Thursday, with shares priced at $22 apiece but expected to open roughly 14% above that.
The Kenvue deal saw J&J sell 172.8 million shares in an upsized $3.8 billion. The parent said it will continue to own a stake of about 91% in Kenvue, which controls brands including Band-Aid, Tylenol, Aveeno, Zyrtex, Listerine and more.
Going forward, the question is whether this will draw out more IPOs. Last year, only 71 IPOs or direct listings with an initial valuation of $50 million or greater made it to market, compared to 397 in 2021.
The Kenvue IPO is the largest since electric vehicle producer Rivian Automotive Inc listed on the Nasdaq in November 2021.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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