Photographer: Mat Hayward / Getty Images
Photographer: Mat Hayward / Getty Images
The Honest Co., co-founded by actress Jessica Alba, has applied to be listed on the Nasdaq in an initial public offering.
The Los Angeles company said in one prospectus to the U.S. Securities and Exchange Commission on Friday that it will seek a listing size of $ 100 million, an alternate amount that is likely to change.
A stock sale could value Honest at about $ 2 billion, Bloomberg News reported in January.
Morgan Stanley, JPMorgan Chase & Co. and Jefferies Financial Group Inc. advise the company. It is expected to be traded under the symbol HNST.
Launched in 2012, Honest sells diapers, moisturizers, shampoo and other products online at honest.com and thousands of retail locations. Consumer products manufacturers have seen a steady increase in the demand for goods considered free from chemical and artificial additives in recent years – a trend accentuated by the Covid-19 pandemic.
The request comes amid the increased demand for personal care and cleaning products during the pandemic. Last year’s revenue was just over $ 300 million, up 28% from 2019, according to the filing, in part due to the massive interest in home goods. The company posted a net loss of $ 14.5 million in 2020 and an adjusted profit before interest, tax, depreciation and amortization of $ 11.2 million.
Since its launch in 2012, Honest has built relationships with some of the country’s largest retailers, including Target Corp. and Amazon.com Inc. Honestly said it generated 55% of its sales through its own website last year, which made gains during the pandemic as shoppers turned away from brick-and-mortar stores.
When consumers faced shortages of products such as wipes at the height of the pandemic and mandatory closures, they turned to online brands that could meet demand. Higher spending on hygiene and cleaning products is expected to continue, as well as greater reliance on e-commerce.
Honest counts L Catterton’s global co-chief executive officers Scott Dahnke and Michael Chu among its largest shareholders. The filing also lists Lightspeed Venture Partners, Fidelity and General Catalyst as investors.
– Assisted by Gerald Porter Jr.
Updates to include financial statistics in the seventh paragraph.