Benzinga | May 5, 2021 05:40AM EDT

Jessica Alba's Ethical Consumerism-Centered Brand Honest Company Raises $413M In IPO

Actress-turned-entrepreneur Jessica Alba's The Honest Company Inc, best known for making diapers, sunscreens and cleaning products, has raised $413 million in an initial public offering, valuing the company at $1.45 billion.

What Happened: According to a regulatory filing, the company sold about 25.8 million shares for $16 each, slightly above the midpoint of its indicated range. Honest had earlier indicated shares could be sold in the IPO at $14-$17 a share.

The Los Angeles-based company will list its shares on the Nasdaq under the symbol "HNST" on Wednesday.

Alba owns 5.65 million shares in Honest, giving her stake a valuation of around $90.4 million at the IPO price.

See Also: Honest Company IPO: What Investors Should Know About Jessica Alba's Lifestyle Company

The company has raised money in several private funding rounds and was reported to be considering public going in 2016 when a lawsuit said its products contained a harsh chemical it had pledged to avoid.

Lightspeed, Fidelity and General Catalyst-backed company had then reached a $7.35 million settlement for wrongly labeling ingredients in some products as natural, plant-based, or chemical-free.

Why It Matters: Alba markets Honest products as safe and eco-friendly, most of which were initially sold online. The company has also tied up with brick-and-mortar retailers such as Target Corp (NYSE:TGT), Amazon.com Inc (NASDAQ:AMZN), Costco Wholesale Corp (NASDAQ:COST) and Whole Foods for distribution.

The company generated sales of $300.5 million in 2020, a 28% increase over 2019. Honest reported revenue of $235.6 million for fiscal 2020, up 27.6% year-over-year, and net loss of $14.5 million.

Diapers and wipes made up 63% of 2020 revenue, while skin and personal care product revenue represented 26% of sales.

Photo by TechCrunch on Flickr.