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Summary
- Consumer goods enterprise The Honest Company is planning to go public on the Nasdaq exchange.
- It announced on Monday, April 26, that it is seeking a valuation of more than US$ 1.5 billion in its initial public offering (IPO).
- Hollywood actor Jessica Alba, known for her roles in Fantastic Four, Dark Angel, etc., co-founded Honest Co in 2011.
Consumer goods enterprise The Honest Company announced on Monday, April 26, that it is seeking a valuation of more than US$ 1.5 billion in its initial public offering (IPO) in the US stock market.
Hollywood actor Jessica Alba, known for her roles in Fantastic Four, Dark Angel, etc., co-founded Honest Co with entrepreneurs Brian Lee, Sean Kane, and Christopher Gavigan in 2011.
Honest Co’s Funding, IPO Details & Stock Price
In August 2015, during a Series D funding, Honest Co’s shares were valued at US$ 45.75 apiece. Following a lawsuit in 2016, however, its valuation dropped from the Series D series offering due to the high expenses of settlements.
In October 2017, the firm concluded a Series E funding round at US$ 19.6 per share, setting a valuation of less than US$ 1 billion.
The Los Angeles-based consumer retailer is said to be considering launching its shares on the New York-based Nasdaq Exchange under the ticker of ‘HNST, as per the company’s filing.
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It estimates to list nearly 25.8 million ordinary shares in the IPO price range of US$ 14 apiece to US$ 17 apiece.
Honest would get approximately US$ 110 million at the upper stock price range, excluding earnings from shares given by stockholders.
Morgan Stanley, JP Morgan and Jefferies would be among its leading guarantors for the listing.
Honest Co’s Lawsuit
While the company claims to manufacture eco-friendly baby goods and beauty products, it came under the legal scanner in 2016 on the charges of its products containing harsh synthetic chemicals it vows to avoid. The firm had maintained that its baby food formula was Food and Drug Administration (FDA) approved.
Honest Co eventually settled the lawsuit, filed in the Los Angeles Superior Court, by offering a US$ 7.35 million settlement for inappropriately labelling constituents in some of its goods.
The company is said to have received a certificate from the United States Department of Agriculture under the National Organic Program. It currently operates in North American markets and retails diversified consumer products, including sanitizers, lotions, and laundry detergents.
Honest Co has said that it expects to bolster its e-commerce business footprints across international markets, including emerging Asian marketplaces.
