SUMMARY

• J&J to introduce Kenvue, its consumer-healthcare spinoff, targeting a $3.5 billion raise at a $40 billion valuation
• Kenvue's IPO would be the largest U.S. IPO since Intel's spinoff of Mobileye in 2022
• J&J plans to maintain majority ownership post-IPO, with plans to divest the rest of its stake later in 2023

Listen up, folks! Johnson & Johnson, the company that's got your back for everything from headaches to boo-boos, is making moves to share a piece of its consumer-healthcare pie. They're gearing up for a roadshow to introduce Kenvue, their soon-to-be independent offshoot, to the world of investors as early as Monday.

With a target of raising a cool $3.5 billion at a valuation of about $40 billion, Kenvue is set to carve out its space in the consumer market. Picture all your favorite brands, like Tylenol, Band-Aids, Aveeno, and Neutrogena, under the Kenvue umbrella. If all goes according to plan, you'll be able to find their stock on the NYSE under the ticker KVUE.

Now, IPO roadshows are like the pregame before a stock starts trading – they usually last anywhere from a few days to a week. In 2022, this consumer-healthcare wonder raked in a whopping $14.95 billion, making up 15% of J&J's total revenue.

If Kenvue's IPO goes through, it'll be the biggest one since Intel spun off its self-driving car unit Mobileye in 2022. Kenvue's got its work cut out for it, though. Competing with giants like Procter & Gamble and other consumer-health divisions of big-name drugmakers, Kenvue will have to bring the heat to see modest sales growth in the coming years.

As for J&J, they won't be letting go of their baby just yet. They'll hold onto majority ownership after the IPO but plan to shed the rest of their stake later in 2023.

WOM Money Picks

Be a part of the winning team | 81% Success Rate.