Pharmaceutical powerhouse J&J expects to price its Kenvue IPO shares at $20 to $23 for a potential $40 billion company valuation.
Johnson & Johnson (NYSE:JNJ) plans to price its upcoming shares Kenview Inc IPO Between $20 and $23. The initial public offering roadshow has more than $151 million shares of common stock and will be valued at $40 billion in the share range.
Johnson & Johnson announced that it will launch Kenview IPO What could be the largest of its kind in America this year kicks off later this year. Kenvue, a wholly owned subsidiary of the pharmaceutical giant that includes its consumer health business, expects to offer additional share purchase options to underwriters. J&J Spinoff will grant 30-day options to purchase up to 22,680,600 more shares of common stock. Commentators point out that this will cover any potential over-allocation during the initial launch of other stock IPOs.
J&J, which reportedly met with potential investors on Monday, will own 1,716,160,000 shares of Kenview’s common stock. This stake represents approximately 92% of the total outstanding shares of Health Spinoff common stock. However, J&J’s Kenvue stake could also drop below 91% if the underwriters fully exercise their over-allocation option.
Kenview IPO eyes $3.15 million in net proceeds
In a regulatory filing on Monday, Johnson & Johnson estimated that the Kenview IPO would realize approximately $3.15 million in net proceeds. The New Jersey-based pharmaceutical giant also said it would claim all proceeds and profits from the related debt-financing transaction. J&J did not specify when it expects to complete its separation from Kenvue. However, the company said it is likely to happen in mid- to late 2023, with Kenview trading on the New York Stock Exchange as KVUE.
one in preliminary prospectus filed with the Securities and Exchange Commission (seconds), J&J listed the lead underwriters of the IPO. pharmaceutical corporation said Goldman Sachs (NYSE: GS), JP Morgan (NYSE: JPM), and Bank of America (NYSE: BAC) is the joint lead book-running manager for the IPO.
Johnson & Johnson’s consumer health business sells products ranging from Band-Aid bandages and Listerine mouthwash to the pain reliever Tylenol and Johnson’s Baby Powder. In addition, Consumer Health Care and Medical Technology Corporation also produces and sells skin care products such as Neutrogena and Aveeno.
J&J Consumer Health Business
In 2022, J&J’s consumer health business is projected to generate $15 billion in net revenue and $3.8 billion in sales in the first quarter of 2023. According to J&J’s latest earnings report, the unit’s last quarter increased by more than 7% over the previous year. Although the pharmaceutical giant beat expectations for earnings and revenue for the first quarter of the year lowered Its drug sales guidance.
Johnson & Johnson posted revenue of $24.75 billion for the period ended March 31. The company’s revenue of $23.67 billion topped analysts’ expectations. Commenting on the quarterly performance, Joaquin Duato, Chairman of the Board and Chief Executive Officer of the company, said:
“Our first quarter results demonstrate strong performance across all three segments of our business and reflect the dedication of Johnson & Johnson associates around the world. With this momentum, I look forward to the rest of the year, which will be filled with exciting catalysts.” that will create both near and long-term value for patients and all of our stakeholders.
For Q1 2023, J&J projects adjusted earnings per share (EPS) of $2.68, versus the consensus estimate of $2.50.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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