Jessica Alba-backed Honest Company IPO raises $412.8 million
Reuters
Published May 04, 2021 07:20PM ET
Updated May 04, 2021 10:50PM ET
By Echo Wang
(Reuters) -Honest Company Inc, the consumer goods company founded by actress Jessica Alba, said it priced its initial public offering (IPO) on Tuesday slightly above the midpoint of its indicated range, raising $412.8 million.
The company said late Tuesday that it sold 25.8 million shares at $16 each. Honest had previously indicated shares could be sold in the IPO at $14-$17 apiece.
The IPO values Honest at $1.44 billion.
Honest, which counts the likes of Lightspeed, Fidelity and General Catalyst among its backers, sells products including diapers, nursing pillows, vitamins and non-toxic household products. These are sold on Honest.com and through partnerships with brick-and-mortar stores including Costco (NASDAQ:COST) and Target (NYSE:TGT).
Alba, known for her roles in film "Fantastic Four" and TV series "Dark Angel", in 2011 co-founded Honest, which touts its baby products as a safer alternative to those that use synthetic chemicals, and remains a shareholder.
But the company came under scrutiny in 2016, when a lawsuit said its products contained a harsh chemical it had pledged to avoid.
Honest then reached a $7.35 million settlement for wrongly labeling ingredients in some products as natural, plant-based or chemical free.
The Los Angeles-based company plans to list its shares on the Nasdaq under the symbol "HNST" on Wednesday.
Honest is offering 6.5 million shares of common stock. Stockholders named in the prospectus are offering 19.4 million shares of common stock.
Morgan Stanley (NYSE:MS), Jefferies (NYSE:JEF) and J.P. Morgan are among the lead underwriters for the offering.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.