The company revealed Monday that the IPO is expected to be priced between $ 14 and $ 17 a share. A total of 25.81 million shares are being offered in the IPO, with the company offering 6.45 million shares to raise up to $ 109.7 million and selling shareholders offering 19.36 million shares to raise up to $ 329 , 0 million. The company expects to have 90.52 million shares outstanding after the IPO. The company could be valued at $ 1.5 billion. The main underwriters for the initial public offering are: Morgan Stanley, JPMorgan and Jefferies. See: Oatly IPO: 5 Things You Should Know About Herbal Dairy Company Before It Goes Public Alba said in a letter from the founder included in the prospectus that the idea for Honest Co. HNST came from her own experiences in treating allergies and asthma, including long hospital stays and his efforts to pressure Capitol legislators to reform chemical legislation. Currently, she serves as Creative Director for the Los Angeles-based company and Nikolaos Vlahos as CEO. Vlahos joined Honest Co. in 2017 after working at Clorox Co. CLX, -0.78%, where he was Director of Core Global Functions, Lifestyle and Home Operations. Honest Co.’s 2020 revenue totaled $ 300.5 million, up from $ 235.6 million in 2019. The company had a net loss for the year of $ 14.5 million. Honest Co. has products in three categories: diapers and wipes, which accounted for 63% of 2020 revenue; skin and personal care, which accounted for 26% of revenue in 2020; and home and wellness, with 11% of 2020 revenue. Honest Co. is classified as an “emerging growth company,” which means it does not have to make the same disclosures required of larger public companies. A company remains an emerging growth company until it reaches a series of milestones, including annual revenue of more than $ 1.07 billion. The company cautions that it has incurred net losses every year since its launch and will likely increase expenses as it expands and grows. Plus: Nestle in talks to buy The Bountiful Co. ahead of IPO However, the company notes that, with consumers’ interest in health and wellness and “clean” products, it is doing business in growing categories. Honest Co. estimates that the US clean and natural diapers category generated about $ 1 billion in 2019; skin and personal care generated $ 12 billion; and home and wellness totaled $ 4 billion in retail sales. The compound annual growth rate (CAGR) of those three categories between 2019 and 2025, respectively, is expected to be 16%, 10% and 4%. Honest Co. estimates its market share to be around 5% “which provides significant room for growth,” according to the prospectus. Honest Co. is also a digital native at a time when consumer buying behavior is trending online. In 2020, 55% of revenue was generated online and 45% through retail channels. Honest Co. products can be found at 32,000 retailers in the US, Canada and Europe, including big names like Target Corp. TGT, -0.91% and Walgreens Boots Alliance Inc. WBA, -0.82% Here are 5 things More You Should Know About Honest Co .: Honest Co. does not plan to pay dividends in the foreseeable future. The company plans to use the proceeds from the IPO for general corporate purposes, including operating expenses, working capital and marketing. Online order deliveries are carbon neutral. In 2020, the company joined a program to offset greenhouse gas emissions from its online sales through the end of 2022. The company achieved that goal between May 2020 and October 2020, and expects to continue to do so until next year. anus. Honest Co. is diverse, even at the executive level. As of December 31, 2020, nearly half of the company’s workforce was people of color, 68% of the workforce was female, and women accounted for 53% of leadership. Y: Nike launches a reconditioned shoe program. Other members of the executive team include Kelly Kennedy, Chief Financial Officer, and Sharareh Parvaneh, Chief Information Officer. Board members include Katie Bayne, who has been a senior advisor to Guggenheim Securities, and Avik Pramanik, a 36-year partner at consumer-focused private equity firm L Catterton. Honest Co. says that four “pillars” are the key to the brand. Those pillars are: clean, sustainable, effective and carefully designed. There are more than 2,500 chemicals and materials that the company excludes from its ingredient list. Products are made with sustainably sourced or recycled ingredients. And skin and personal care items take allergies and other sensitivities into account. Brand damage, lack of brand development, and inability to leverage brand equity are risk factors listed by Honest Co. Honest Co. competes with some of the largest consumer companies on the planet. The clean, natural space is getting more competitive, with big names jumping into the mix. Companies selling products in the same categories as Honest Co. include L’Oreal SA OR, -0.48%, Estee Lauder Cos. EL, + 0.88%, Procter & Gamble Co. PG, -1.62% and Kimberly-Clark Corp. KMB, -1.14% Watch: How the pandemic changed investment habits for different generations “Many of these competitors have financial and other resources substantially greater than us and some of whose products are well accepted in today’s marketplace, “says the Honest Co. prospectus. “Many also have longer operating histories, greater compliance infrastructures, greater technical capabilities, faster shipping times, lower cost shipping, lower operating costs, greater financial, marketing, institutional and other resources and more consumer bases bigger than us ”. Additional reporting by Tomi Kilgore.
Honest Co Initial Public Offering: 5 Things You Should Know About Jessica Alba’s ‘Clean’ Baby, Beauty & Home Company Before It Goes Public