In what would be the largest US IPO since late 2021, Kenvue (KVUE) is slated to raise $3.3 billion, more than doubling YTD IPO proceeds. It's scheduled to begin trading this week.
Being spun out of Johnson & Johnson, consumer health giant Kenvue is pitching a mature and profitable business with a healthy dividend yield, bolstered by a portfolio of well-known brands like Tylenol and Listerine. The company's IPO proceeds, as well as $9 billion of new debt issuance, will be paid to J&J as part of the separation.
In the past five years, more than 40 spin-offs have IPO'd in the US, though the number declined in 2020 and 2021 as many companies paused major organizational changes during the pandemic. Of this group, 29 raised $100 million or more in spin-offs from publicly-traded parents; 28 are still trading.
On average, the group of larger spin-off IPOs over the past five years have...
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