The beauty and baby company of actress Jessica Alba, Honest Beauty, has said it was aiming for a valuation of more than US$1.5bn in its initial public offering (IPO) in the US on Monday.
According to CNBC, the Los Angeles-based company, backed by experienced beauty investor L Catterton, is planning to offer around 25.8 million shares priced between $14 and $17 on the Nasdaq under the symbol ‘HNST’.
Excluding proceeds from shares offered by stockholders, Honest would receive somewhere in the region of $110m for the upper end of its range.
The company, which conducted an overhaul of its look in 2018, is planning to use the proceeds from the offering to fund marketing and direct-to-consumer advertising, as well as new launches and expand its business with complementary brands.
Back in February, Honest Beauty, helmed by CEO Nick Vlahos, was reportedly preparing to go public, seeking a valuation of around $2bn, people close to the matter told Bloomberg, a deviation from the company’s plans to sell for an estimated $1bn, according to the source.
Morgan Stanley, Jefferies and J.P. Morgan are said to be among the lead underwriters for the offering.
Honest claims to avoid using some 2,500 chemicals and materials in its beauty products in order to create ‘safe, effective products’, according to the brand’s website.
As well as beauty and baby skus, Alba’s brand also offers cleaning products and apparel.
