DTC Brand The Honest Company Applies For IPO, Valued At Approximately US$2 Billion

Recently, DTC maternal, infant and beauty brand The Honest Company submitted an IPO application and is expected to raise US$100 million. The Honest Company plans to list on Nasdaq under the ticker "HNST."

It is understood that Morgan Stanley, Jefferies and JP Morgan are all underwriters of the issuance.

The Honest Company was founded in 2012 and is headquartered in Los Angeles. It is an American consumer products company co-founded by Hollywood actress Jessica Alba and is committed to selling safe and environmentally friendly products.

Judging from the official website, the company sells products including infant diapers and care products, infant clothing, beauty, skin care, home cleaning and care and other categories.

In January, Bloomberg News reported that The Honest Company was valued at approximately $2 billion.

In 2020, under the impact of the epidemic, physical stores were closed one after another. Digital brands like The Honest Company sold products on their own websites and on marketplaces such as Amazon, and achieved considerable results.

The company said its revenue rose about 28% to $300.5 million in the year ended Dec. 31. Among them, digital sales channels accounted for 55% of revenue last year.

It is worth noting that of the revenue of more than 300 million US dollars, diapers and wipes alone drove 63% of sales, with other revenue coming from skin care and personal care (26%) and household cleaning and care products (11% )promotion of.

Although the company's revenue in 2020 increased by about 28% compared with 2019, it has never achieved an annual profit since its inception.

The company said in a filing with the U.S. Securities and Exchange Commission (SEC) that its net loss narrowed to $14.5 million in 2020 from $31.1 million in the same period in 2019.

The Honest Company said it plans to use the proceeds from the IPO for marketing and DTC advertising, while launching new products and purchasing complementary businesses.

The Honest Company also mentioned that it is listing its shares because it plans to strengthen its online business and strengthen its presence in retailers and international markets, including the Asian region.