The Honest Company, a non-toxic lifestyle brand of baby, skin, and household products, raised $413 million by offering 25.8 million shares (75% secondary) at $16, within the range of $14 to $17. At pricing, the company commands a fully diluted market value of $1.6 billion.
The Honest Company is a health and environmentally-conscious lifestyle brand that sells a variety of products through digital verticals. Its three product categories are Diapers and Wipes (63% of 2020 revenue), Skin and Personal Care (26%), and Household and Wellness (11%). The company's popular diaper products act as an effective customer acquisition tool, allowing it to successfully cross-sell to 90% of its diaper customers.
The Honest Company plans to list on the Nasdaq under the symbol HNST. Morgan Stanley, J.P. Morgan, Jefferies, BofA Securities, Citi, William Blair and Guggenheim Securities acted as lead managers on the deal.
