DTC brand The Honest Company files for IPO with a valuation of approximately $2 billion

Recently, DTC maternal and child care and beauty brand The Honest Company submitted an IPO application , expecting to raise $100 million. The Honest Company plans to be listed on the Nasdaq with the stock code "HNST".

It is understood that Morgan Stanley , Jefferies and JP Morgan are all underwriters of this issuance .

Founded in 2012 and headquartered in Los Angeles, The Honest Company is an American consumer products company co-founded by Hollywood actress Jessica Alba and is committed to selling safe and environmentally friendly products.

According to the introduction on the official website, the products sold by the company include baby diapers and care products, baby clothing, beauty products, skin care, household cleaning and care, and other categories.

In January , Bloomberg News reported that The Honest Company was valued at around $2 billion .

In 2020, due to the impact of the epidemic, physical stores were closed one after another, and digital brands like The Honest Company sold products on their own websites and marketplaces such as Amazon, and achieved considerable results.

The company said its revenue grew about 28% to $300.5 million in the year ended Dec. 31. Digital sales accounted for 55% of revenue last year.

It is worth noting that of the over $300 million in revenue , diapers and wipes alone drove 63 % of sales , with the rest coming from sales of skin care and personal care products ( 26%) and household cleaning and care products ( 11%) .

Although the company 's revenue in 2020 increased by approximately 28% over 2019 , it has never achieved an annual profit since its inception .

The company said in a filing with the U.S. Securities and Exchange Commission ( SEC) that its net loss narrowed to $14.5 million in 2020 from $31.1 million in the same period of 2019 .

The Honest Company said it plans to use proceeds from the IPO for marketing and direct-to-consumer advertising, as well as to launch new products and buy complementary businesses.

The Honest Company also mentioned that it was taking its shares public because it plans to strengthen its online business and enhance its presence among retailers and in international markets, including in Asia.

DTC

The Honest Company

IPO