Jessica Alba Honest IPO: Hollywood To Wall Street

Jessica Alba Honest IPO: Jessica Alba is best known as an actor with appearances on television shows and movies, including Dark AngelSin City, and Fantastic Four. Alba does more than appear on screens, though. She started The Honest Company with her business partner, Christopher Gavigan. The company is preparing to file documents to go public, trading under the ticker HNST.

Given the upcoming IPO, how do analysts believe Alba’s Honest Company will perform once it starts trading on the NASDAQ? One thing that they’re looking at is new regulations that could act as a tailwind.

A few members of California’s state government have written a bill that would ban forever chemicals from children’s products. Research shows that forever chemicals—also known as PFAS—can increase risks of cancer, reduce the effectiveness of vaccines, and harm fetal development. Many public health experts and scientists believe that the chemicals should not be used in any products since they pose significant threats to human and environmental health.

If more companies like Honest can thrive, they could at least reduce the presence of harmful chemicals that come into contact with people and pollute the environment in ways that can last decades or centuries. Alba and the other current shareholders of the Honest Company believe that they can generate profits by attracting health-minded consumers, offering safer products, and retaining public trust.

Why Jessica Alba Started Honest

Jessica Alba says that she started the Honest Company because she wanted alternatives to the chemical-filled baby products that she found in stores. In 2011, after having her second of three children, she recognized that parents needed access to healthier products.

Alba has good reasons for concern. The Environmental Working Group (EWG) reports that most states do not have bans that prevent companies from including “forever chemicals” in products intended for children.

The Honest Company quickly expanded to include more products, including diapers, shampoo, and home cleaners.

Alba has used her position with the Honest Company to encourage ethical consumerism. She has petitioned Congress to mandate product testing and restrict the types of companies use in consumer goods.

In 2016, a lawsuit accused the Honest Company of using 11 synthetic ingredients in a baby formula labeled as organic. The court dismissed the case against the Honest Company because the USDA had certified the formula as organic.

Jessica Alba Honest IPO Underwriters

Honest announced in April that it would soon have an IPO in the near future. Jefferies, JPMorgan (JPM), and Morgan Stanley (MS) are underwriting the IPO.

It will take some time for the company to complete and file paperwork seeking approval.

How Much Will Honest Raise In its IPO?

Honest plans to offer 25.81 million shares during the IPO. Current shareholders will offer 19.36 million of their shares. The company will offer 6.45 million additional shares to raise funds.

According to the company, shares during the IPO will sell between $14 and $17. The 25.81 million shares should raise about $438.7 million.

Obviously, the amount that the company receives will depend on how many people choose to invest, how many shares it sells, and how the stock price responds once the market opens.

The Honest Company will retain 90.52 million shares after the IPO.

Does Jessica Alba Still Own The Honest Company?

Several people already have major investments in the Honest Company, so it’s inaccurate to say that Jessica Alba is the business’s owner. She is listed as the company’s founder and chairperson.

She’s also the face of Honest’s branding, appearing in many ads, interviews, and social media posts. She’s often accompanied by her children when representing Honest’s brand.

How Much Of Honest Does Jessica Alba Own?

At the moment, though, she is reported to own 15% to 20% of the company’s shares. It’s unclear how many of her shares she will contribute to the IPO.

Other people with significant investments in Honest include CEO Nick Vlahos and CPO Christopher Gavigan, who co-founded the company with Alba.

Is Jessica Alba A Billionaire?

Jessica Alba certainly has a lot of money, but she’s not close to reaching the status of a billionaire.

Many people mistakenly believe that she’s a billionaire because they think she owns Honest, which has recently been valued at $1.5 billion. The truth is that she owns less than a fifth of the company, and will probably own less than that after Honest’s IPO.

The IPO, however, could add to her estimated wealth by pushing up the value of her remaining shares.

It’s incredibly difficult to estimate the net worth of someone like Jessica Alba. She has multiple revenue streams, including Honest and her movie career. Her net value is probably somewhere around $350 million.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.