Image source: The Honest Company
The Honest Company, an all-natural baby, beauty and household products company co-founded by actress Jessica Alba, filed on Friday for an initial public offering (IPO) with the US Securities and Exchange Commission (SEC).
In its Form S-1, the company said it plans to list shares on The Nasdaq Global Select Market under the symbol “HNST.”
A share sale could value Honest at about $2 billion, Bloomberg News reported in January.
The filing follows a strong year for the company that was driven by a pandemic-driven rise in demand for lotions, sanitizers and baby products, according to Honest.
In 2020, the company saw a net loss of $14.5 million on $300.5 million in revenue, compared to a net loss of $31.1 million on $235.6 million in revenue in 2019.
All product categories grew last year, but Honest’s household and wellness revenue increased by 116.5% to $32.5 million, up from $15 million.
The company attributed the jump to “sales from the sanitization and disinfecting products that we introduced in 2020, in particular through the retail channel.”
“During this pandemic, we’ve seen behavior shift to support businesses that align with purpose and values. Our trajectory has shown that people continue to choose Honest. Honest continues to box above its weight with consumers and customers,” the company wrote in its prospectus.
“We see consumers increasingly self-educating on the benefits of clean and natural products through social media, influencers and other online content, driving digital engagement and purchasing that supports continued outsized growth of the ecommerce channel,” it also said.
Reuters noted that Honest’s move to go public comes as it plans to boost its online business, both with third-party sellers and in international markets.
Honest counts private equity firm L Catterton’s global co-chief executives, Scott Dahnke and Michael Chu, among its largest shareholders. The filing also lists Lightspeed Venture Partners, Fidelity and General Catalyst as investors.
Alba has been chief creative officer since inception and board chair since May 2018.
Launched in 2011, Honest has touted its “clean” products as a safer alternative to those made using synthetic chemicals. Since then, Honest has formed relationships with several of the country’s largest retailers, including Target Corporation (NYSE: TGT ) and Amazon.com Inc (Nasdaq: AMZN ).
In 2017, The Honest Company settled a lawsuit that claimed it falsely labeled dozens of home and personal care goods as natural, chemical-free or plant-based.
Source: Equities News