Actress Jessica Alba's Honest Company valued $2 billion
Hollywood actress Jessica Alba co-founded Honest Company, made its stock market debut on Wednesday, after raising $413 million in the initial public offering.
Honest Company opened 30% above the offer price, valuing the 40-year-old Alba’s stake in the startup at $90 million. Honest Company, which makes beauty and baby products, was valued at more than $2 billion after its debut.
Alba founded Honest Co. a decade ago after using baby laundry detergents that caused her allergic reactions. Along with detergent, the company’s other first products included diapers and wipes that were sold on Honest Co.’s website. Today, the brand includes moisturizers, mascara and vitamins.
Most of its sales come from its website, it also sells its products in major stores, including Target and Amazon.com. Honest Co., based in Los Angeles, said it sold nearly 26 million shares at $16 a piece during its initial public offering, raising almost $413 million. It plans to use some of the money to expand and sell its products outside the U.S.
It has never been profitable. Last year, it posted a loss of $14.5 million, smaller than the $31 million loss it reported in 2019. Its 2020 revenue rose 28% from the year before to $300 million.
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