The Honest Company, Inc., a consumer goods company founded by actress Jessica Alba in 2011, has sold 25.8 million in shares at $16 each, raising $412.8 million, valuing the company at $1.44 billion. The company is hoping the IPO will support its strategy of increasing accessibility and product innovation to meet consumers’ needs, while driving a clean lifestyle conversation in the industry. In 2020, The Honest Company’s revenue grew to $300.5 million in 2020, up from $235.6 million the year before.
Company shares were listed on the Nasdaq Global Select Market under the ticker symbol “HNST” on Wednesday, May 5, and the offering is expected to close on May 7. Jessica and Nick Vlahos, Honest Co.’s CEO, rang the opening bell at the Nasdaq MarketSite in Times Square on Wednesday morning in honor of the occasion. “While I know we still have work to do, I want women everywhere to know that there’s plenty of room at this table and I’m saving a seat for you,” Jessica said at the event.
She continued, “As a woman of color, it has been my goal to build a diverse, inclusive and ethical company based on the values of transparency, trust, sustainability and a deep sense of purpose in all that we do.”
Honest is offering 6.5 million shares of common stock, and the selling stockholders named in the prospectus are offering 19.4 million shares of common stock. The selling stockholders have granted the underwriters a 30-day option to purchase around 3.9 additional shares of common stock. The company will not receive any proceeds from the sale of shares by the selling stockholders.
“To our present and future shareholders, here’s what we promise to you: we’ll passionately prioritize the health and wellbeing of people and the plant, we’ll fearlessly challenge the status quo and innovate to deliver on our mission, and we’ll continually push to be the best version of our ourselves. We’re here to create a honest world and we’re just getting started,” said Jessica.