Photographer: Mat Hayward / Getty Images
Photographer: Mat Hayward / Getty Images
The Honest Co., co-founded by actress Jessica Alba, submitted a listing on the Nasdaq in an initial public offering.
The Los Angeles company said in a prospectus to the U.S. Securities and Exchange Commission on Friday that it will request a $ 100 million listing, a substitute amount that is likely to change.
A sale of shares could value Honest at about $ 2 billion, Bloomberg News reported reported in January.
Morgan Stanley, JPMorgan Chase & Co. and Jefferies Financial Group Inc. advises the company. It is expected to trade under the HNST symbol.
Launched in 2012, Honest sells diapers, moisturizers, shampoos and other products online at honest.com and in thousands of retail outlets. Manufacturers of consumer goods have seen a steady increase in demand for goods that are seen as devoid of chemical and artificial additives in recent years – a trend that has been exacerbated by the Covid-19 pandemic.
The filing comes amid increased demand for personal care and cleaning products during the pandemic. Last year’s sales were just over $ 300 million, according to the record, an increase of 28% compared to 2019, partly due to growing interest in household goods. The company posted a net loss of $ 14.5 million in 2020 and adjusted earnings before interest, taxes, depreciation and amortization of $ 11.2 million.
Since its launch in 2012, Honest has established relationships with some of the largest retailers in the country, including Target Corp. and Amazon.com Inc. Honest said it generated 55% of its sales last year from its own website, which made gains during the pandemic as shoppers moved away from physical stores.
As consumers faced shortcomings in products such as pandemic napkins and mandatory closures, they turned to online brands that could meet demand. Higher spending on hygiene and cleaning products is expected, as well as greater dependence on e-commerce.
Honestly counts L Catterton’s global executive co-directors, Scott Dahnke and Michael Chu, among its largest shareholders. The filing also lists Lightspeed Venture Partners, Fidelity and General Catalyst as investors.
– With the assistance of Gerald Porter Jr.
(Updates to include financial values in the seventh paragraph.)