WASHINGTON (dpa-AFX) - Consumer brands company The Honest Co.(HNST), founded by actress Jessica Alba in 2011, soared 44 percent on its debut on the Nasdaq.
Shares of Honest, which was priced at $16 in its IPO, ended Wednesday's trading at $23 per share, thus giving the company a market value of around $2.1 billion. However, the stock is down nearly 10% in Thursday's regular trading, giving it a market capitalization of $1.88 billion.
In its IPO, Honest raised $413 million after selling 25.5 million shares at $16 each. The company offered 6.5 million shares, while investors including private equity firm L Catterton, Institutional Venture Partners, Lightspeed Venture Partners and General Catalyst offered 19 million shares.
Commenting on the Nasdaq debut, Honest CEO Nick Vlahos said that the successful IPO was a 'validation' of the company's strategy. 'We're a mission driven brand. We are at the forefront of this kind of clean movement as it pertains to how consumers are looking at products from an ingredient perspective, around sustainability, around social responsibility,' he added.
Jessica Alba has a stake of $130 million in the company. She has stepped down as Chair of the Board, but remains a Director and also serves as Honest's Chief Creative Officer.
Last year, the company's net sales rose by 28 percent to touch $300 million, while net loss narrowed to $15 million.
Copyright RTT News/dpa-AFX
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