Honest Co, a consumer goods company founded by actress Jessica Alba, filed for a U.S. initial public offering on Friday following a strong year that was driven by a pandemic-driven surge in demand for baby products, lotions and sanitizers.
The company, which plans to list its shares on the Nasdaq under the symbol "HNST", said its revenue jumped about 28% to $300 million for the year ended Dec. 31, with diapers and wipes accounting for about two-thirds of its sales.
Net loss for the period also narrowed to $14.5 million from $31.1 million a year earlier, it said in a filing with the U.S. Securities and Exchange Commission (SEC). The company's move to list its shares comes as it plans to strengthen its online business, while bolstering its presence at third-party sellers and in international markets, including the lucrative Asian region.
Los Angeles-based Honest 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 J.P. Morgan are among the underwriters for the offering. In January, Bloomberg News reported that Honest could seek a valuation of about $2 billion in an IPO.
Alba started Honest in 2011, touting its baby products as a safer alternative to those that use synthetic chemicals, but the company was forced to settle a lawsuit in 2017 that claimed it fraudulently labeled dozens of home and personal care products as natural, plant-based or chemical-free.