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Johnson&JohnsonThe $40 billion consumer health business is being valued ahead of its IPO later this year, according to a Wall Street Journal report.
Soon-to-be spin-off Kenvue is looking to raise $3.5 billion or more in the offering, people familiar with the matter told the Journal.
The newspaper noted that “the stock sale would be by far the largest in what has been a quiet year for IPOs so far.”
Kenvue plans to meet with potential investors as early as Monday, the sources told the Journal.
When asked about the Journal’s report, J&J spokeswoman Tesia Williams told CNBC, “Unfortunately, I have no information to provide.”
J&J previously said it expects to complete the split from Kenvue by mid to late 2023.
The consumer goods giant has also announced that it will retain the majority stake in Kenvue, with plans to trim the rest of its stake later in the year.
Kenvue’s stock would trade on the New York Stock Exchange under the ticker KVUE.
J&J announced its plan to spin off its consumer health business in late 2021. This division makes patches, skin care products under the Neutrogena and Aveeno brands, pain reliever Tylenol, and J&J’s baby powder.
J&J still faces thousands of allegations that its talc baby powder and other talc products caused cancer.
A federal bankruptcy judge last week halted nearly 40,000 talk lawsuits through mid-June. This decision was part of J&J’s second attempt to settle talc claims in bankruptcy proceedings.
The suspension will give J&J time to seek court approval of its proposed $8.9 billion settlement with the plaintiffs in the Talk cases.
Pursuant to its IPO filing, Kenvue will assume Talk-related liabilities arising outside of the United States and Canada.
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