Updated Monday, 5/1.
For the first time since early March, there are large IPOs on the calendar for the week ahead. Kenvue (KVUE) is slated to raise $3.3 billion at a $40.6 billion market cap, which would be the largest US IPO since late 2021 and would more than double IPO proceeds year-to-date. It is joined by the largest biotech IPO in nearly two years. As usual, some small issuers may join the IPO calendar late.
Being spun out of Johnson & Johnson, consumer health giant Kenvue offers a portfolio of well-known brands like Tylenol and Listerine, and serves over a billion people across more than 165 countries. The company is mature and highly profitable, and it plans to pay a quarterly dividend with a 3.7% annualized yield at the midpoint. The company has spent the last several years optimizing its business, and even mentions AI among the areas of investment for enhancing its digital capabilities. Kenvue's IPO proceeds, as well as $9 billion of new debt issuance, will be paid to J&J as part of the separation.
Inflammatory disease biotech ACELYRIN (SLRN) plans to raise $350 million at a $1.5 billion market cap, which would be the largest IPO from a biotech since June 2021. The company's lead candidate was licensed from Affibody in late 2021 and is currently in Phase 2b/3 trials for hidradenitis suppurativa (HS), psoriatic arthritis (PsA), and uveitis. ACELYRN expects topline data for its HS trial in the 2H23, and PsA and uveitis in mid-2024.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| ACELYRIN (SLRN) Agoura Hills, CA | $350M $1,510M | $16 - $18 20,600,000 | Morgan Stanley Jefferies |
| Late-stage biotech developing acquired therapies for inflammatory diseases. | |||
| Kenvue (KVUE) Skillman, NJ | $3,251M $40,591M | $20 - $23 151,204,000 | Goldman JP Morgan |
| Consumer health products unit spun out of J&J. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/27/2023, the Renaissance IPO Index was up 11.8% year-to-date, while the S&P 500 was up 8.3%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snowflake (SNOW) and Airbnb (ABNB). The Renaissance International IPO Index was down 5.4% year-to-date, while the ACWX was up 8.3%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Porsche and JD Health.
