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Baby and beauty products maker The Honest Company saw its initial public offering (IPO) raise about US$ 412.8 million on Tuesday, May 4, after selling about 25.8 million shares at US$ 16 apiece, which was in the upper end of its expected range.
Following the IPO, which is said to have valued the consumer goods company at approximately US$ 2 billion, co-founder Jessica Alba’s net worth notably zoomed.
Honest Company IPO Price, Ticker, Stock Performance Details
The Los Angeles-based company had said in a filing last month that it was planning to price its shares between US$ 14 and US$ 17 in the IPO to raise as much as US$ 504.5 million.
©Kalkine Group 2020
After pricing its shares in the higher end of the planned range for its IPO, Honest stocks debuted on the Nasdaq exchange under the ticker of ‘HNST’ on Wednesday.
On its very first trading day, Honest stock opened nearly 33 per cent higher than its IPO price at US$ 21.22. The scrip surged to a day high of US$ 23.88 before closing at US$ 23.
At its debut day closing price, Honest stock was nearly 44 per cent up from its IPO price and about eight per cent above its opening value.
The baby care manufacturer saw lead underwriters like Morgan Stanley, JPMorgan and Jefferies, who were extended the option to purchase an extra 3.9 million shares.
Jessica Alba & Her ‘Dream Project’
A Hollywood actor known for movies like The Fantastic Four, The Eye, Awake, etc., Jessica Alba established The Honest Company in 2011 with the agenda to produce “safe” baby and beauty products that are free of harmful chemicals.
However, the company rolled into trouble in 2016 when a lawsuit surfaced claiming that its products actually contained the very synthetic elements that it had pledged to avoid.
The lawsuit went on the cost Honest some US$ 7.35 million in settlement for “wrongfully labeling” the ingredients in some of products.
How Jessica Alba’s Net Worth Ballooned
After the lawsuit, Honest’s reputation and valuation drooped, but the company eventually gained momentum and approached the milestone of becoming publicly listed in 2021. And with that, following the IPO and stock market debut, Jessica Alba’s net worth is said to have bloomed as well.
As per the retail enterprise’s S-1 form filed with the SEC prior to the offering, the mother-of-three owns some 2.82 million shares in the company, which is about 6.7 per cent.
Going by the average share price of US$ 22, the value of Alba’s holdings on a diluted basis is said to be above US$ 90 million, as per reports.
The S-1 form also points that as the company’s chief creative officer, Alba’s compensation, including salary, bonus, etc., amounted to a whopping US$ 2.33 million in the year ending 31 December 2020.
With the milestone of public listing achieved, it is now time to see how the actor-cum-entrepreneur aces Wall Street like she did Hollywood.
