Mead Johnson Nutrition IPOs Today

Includes: BMY, MJN
by: STLPlace

Originally written on 2/6/09.

I remember reading this last year and this morning I read it from Yahoo Finance. Here is the prospectus at the SEC, and here is a glimpse at IPOHome. It looks like Mead Johnson (NYSE:MJN) are going to IPO on Feb 10. (from the roadshow, again from IPOHome).

enfamil infant formula pic

I think most people have heard of their main product, Enfamil (Amazon, Wiki), the infant formula, whether they have kids or not. For instance, I don’t have kids now, but I bought some Enfamil for my friends back in China last year.

At first glance, this is a good IPO. If they trade around the $21 to $24 range (the IPO price range), I may get some. In this recessionary environment, I think most parents still feed their infants with the best formula (if possible). This is especially true back in China.

Mead Johnson was a division of Bristol Myers Squibb (NYSE:BMY) before this IPO. Here's some background about this spinoff from the deal. The company plans to pay 20 cents as a quarterly dividend. Like the EMC/VMWare (NYSE:VMW) spinoff, the parent company is only selling a minority stake (12.5% according to Reuters). I think this, combined with current market conditions, is the reason why this IPO has not received much attention.

Snapshot: offering 25 million shares, ranging from $21 to $24, expected Feb. 10. Dividend (proposed): 80 cents per year.