Actress-turned-entrepreneur Jessica Alba’sThe Honest Company Inc, best known for making diapers, sunscreens and cleaning products, has raised $413 million in an initial public offering, valuing the company at $1.45 billion.
What Happened:According to a regulatory filing, the company sold about 25.8 million shares for $16 each, slightly above the midpoint of its indicated range. Honest had earlier indicated shares could be sold in the IPO at $14-$17 a share.
The Los Angeles-based company will list its shares on the Nasdaq under the symbol "HNST" on Wednesday.
Alba owns 5.65 million shares in Honest, giving her stake a valuation of around $90.4 million at the IPO price.
The company has raised money in several private funding rounds andwas reportedto be considering public going in 2016 when a lawsuit said its products contained a harsh chemical it had pledged to avoid.
Lightspeed, Fidelity and General Catalyst-backed company had then reached a $7.35 million settlement for wrongly labeling ingredients in some products as natural, plant-based, or chemical-free.
Why It Matters:Alba markets Honest products as safe and eco-friendly, most of which were initially sold online. The company has also tied up with brick-and-mortar retailers such asTarget Corp,Amazon.com Inc,Costco Wholesale Corp and Whole Foods for distribution.
The company generated sales of $300.5 million in 2020, a 28% increase over 2019. Honest reported revenue of $235.6 million for fiscal 2020, up 27.6% year-over-year, and net loss of $14.5 million.
Diapers and wipes made up 63% of 2020 revenue, while skin and personal care product revenue represented 26% of sales.