Jan 5, 2023 - Economy

Johnson & Johnson sets up mega-IPO for consumer health unit

Photo of Tylenol pills

Photo Illustration by Scott Olson/Getty Images.

Johnson & Johnson on Wednesday filed IPO registration papers for its consumer health products business, which is being spun out under the name Kenvue.

Why it matters: This could be the largest U.S. IPO since Rivian went public in late 2021, with Renaissance Capital estimating that Kenvue could raise up to $5 billion. It also encompasses a slew of household brands, including Tylenol, Band-Aid, Johnson's Baby Powder, Listerine, Neutrogena and Nicorette.

Backstory: J&J announced 14 months ago that it would spin off the consumer health unit, following similar moves by pharma rivals GSK and Pfizer.

Details: Kenvue plans to list on the NYSE (KVUE) and reports $1.7 billion of net income on $11.2 billion in sales for the nine months ending Oct. 2, 2022. Goldman Sachs and JPMorgan are listed as lead underwriters.

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