Listen to this article

Kenvue, the former consumer health business of Johnson & Johnson, celebrated its debut on the New York Stock Exchange May 4 with CEO and Director Thibaut Mongon and other members of the new company’s leadership team ringing the Opening Bell in Manhattan.

The company began trading under the ticker symbol KVUE in connection with its upsized initial public offering.

Initially, Kenvue said it would make 151.2 million shares of common stock available with an estimated price range of between $20-$23 per share, according to an April filing with the U.S. Securities and Exchange Commission. On May 3, Kenvue and J&J announced the IPO would expand to 172.8 million shares of common stock priced at the high end of its previously established range, $22 per share, for a total of $3.8 billion.

That places the company’s market capitalization at a minimum of $41 billion, according to reports – one of the highest valuations in the U.S. since 2021.

The shares closed at $26.90, up 22.27%

According to J&J and Kenvue, the IPO is expected to close May 8, subject to the satisfaction or waiver of customary closing conditions. Following its completion, J&J will own 90.9% of the total outstanding shares of Kenvue’s common stock. Marking the end – or, perhaps the beginning – to a process that kicked off in November 2021, when J&J announced its intention to split into the two publicly traded companies.

On Twitter, New Jersey Economic Development Authority CEO Tim Sullivan celebrated the IPO.

With its successful IPO complete, @kenvue is the newest member of NJ’s Fortune 100 company roster – huge win for @GovMurphy economic strategy

— Tim Sullivan (@timsullivan510) May 4, 2023

“With its successful IPO complete, @kenvue is the newest member of NJ’s Fortune 100 company roster – huge win for @GovMurphy economic strategy,” he wrote.

Earlier this week, NJBIZ reported that Kenvue would remain in New Jersey, establishing its headquarters in Summit. While that 290,000 square feet of office and R&D space is being renovated and built, the company is operating from one of its facilities in Skillman.

According to Kenvue, it is the largest pure-play consumer health company by revenue. The company is home to iconic brands including Listerine, Band-Aid, Tylenol and Neutrogena, among others, which it says serve approximately 1.2 billion people in 165 counties.

The business is separated into three segments:

• Self Care, featuring Motrin, Nicorette, Zyrtec and Zarbee’s, among others
• Skin Health & Beauty, with Rogaine, Lubriderm, Aveeno and more
• Essential Health, consisting of O.B., Desitin, Stafreey and others

For the first quarter of 2023, J&J reported its Consumer Health business – now the standalone Kenvue – posted a worldwide adjusted operational sales increase of 11.3% to $3.85 billion. In 2022, net sales for Kenvue were over $15 billion, according to that company.

“Helping consumers realize the extraordinary power of everyday care is at the heart of who we are and what we do,” Mongon said in a statement. “As a global leader at the intersection of health care and consumer goods, our carefully curated portfolio of science-backed, iconic brands has been trusted by consumers and recommended by health care professionals for generations. We are ready to bring a new view of care to the world.”

Goldman Sachs & Co. LLC, J.P. Morgan and BofA Securities are acting as joint lead bookrunning managers for the IPO. Citigroup, Deutsche Bank Securities, BNP Paribas, HSBC, RBC Capital Markets and UBS Investment Bank are acting as book-running managers for the IPO and BBVA, ING, IMI – Intesa Sanpaolo, Santander, UniCredit Capital Markets, Academy Securities, Independence Point Securities, Ramirez & Co. Inc., R. Seelaus & Co. LLC and Siebert Williams Shank are acting as co-managers for the IPO.