Jessica Alba is rolling in the dough…
The 40-year-old half-Mexican American actress and entrepreneur’s eco-friendly personal care products brand Honest Co. (HNST) surged 44% in its trading debut on the Nasdaq.
Shares of Honest Co. sold for $16 in their initial public offering to close at $23 per share in trading Wednesday, giving the company a market value of about $2.1 billion.
Honest CEO Nick Vlahos told Yahoo Finance Live 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.”
That produced a hefty return for Alba, whose stake in the company she founded a decade ago is worth about $130 million — at least on paper. Alba didn’t plan to sell her shares in the offering, according to a filing with the U.S. Securities and Exchange Commission.
Though she has stepped down as chair of the board, Alba remains a director of the board and is also the company’s chief creative officer.
Alba founded Honest Co. in 2011 as a direct-to-consumer brand built on a commitment to healthy products, free of harmful toxins and chemicals. The Fantastic Four actress has said she got the idea for the company after breaking out in a rash from detergent that she touched while washing her baby’s clothes.
Since then, Honest has grown into a national brand and has partnerships with retail giants including Amazon, Costco, Target and Walgreens.
In addition to baby products like wipes, diapers and shampoos, the company also sells skincare and cosmetics. During the pandemic, Honest expanded its product line to include cleaning supplies, and it paid off. Vlahos said its household and wellness business grew 111% in 2020.
