Jessica Alba’s Honest Co. targets $1.5 billion valuation in IPO
Jessica Alba’s Honest Co. said Monday it was aiming for a valuation of over $1.5 billion in its initial public offering in the United States.
Alba, known for her roles in film “Fantastic Four” and TV
series “Dark Angel”, in 2011 co-founded Honest, which touts its baby products
as a safer alternative to those that use synthetic chemicals.
But it came under the scanner in 2016, when a lawsuit said
its products contained a harsh chemical it had pledged to avoid.
Honest then reached a $7.35 million settlement for wrongly
labeling ingredients in some products as natural, plant-based or chemical-free.
The company, which also sells an array of consumer goods
including sunscreen lotions, sanitizers and detergents, is planning to
strengthen its online business and bolster its presence in international
markets, including the lucrative Asian region.
The Los Angeles-based company, looking to list its shares on
the Nasdaq under the symbol “HNST”, said in its filing it was offering around
25.8 million shares between $14 and $17 each.
Honest would receive around $110 million at the upper end of
the range, excluding proceeds from shares offered by stockholders.
The company said it was planning to use the proceeds from
the offering to fund marketing and direct-to-consumer advertising, as well as
launch new products and buy complementary businesses.
Morgan Stanley, Jefferies and JPMorgan are among the lead
underwriters for the offering.
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