The Honest Company’s public market debut on Wednesday will start a new stage of growth for the consumer products company, according to actress and founder Jessica Alba.
“I feel like this is where we really dig into this next phase of growth, and this is really the beginning for us in a lot of ways,” Alba said on CNBC’s “Squawk Box.”
She founded the company a decade ago, starting with baby products. Since then, the company’s portfolio has expanded to include makeup, sunscreen and cleaning supplies — all with the promise of transparency around its formulas. That pledge has made it a target of criticism in the past for failing to live up to that standard.
Honest’s net sales grew by 27.6% to $300.5 million last year, and the company narrowed its net loss to $15 million.
Roughly 55% of its sales come from digital orders, CEO Nick Vlahos told Andrew Ross Sorkin. Honest’s use of social media, particularly on Alba’s own accounts, has helped drive that digital growth.
“Social media has been a strategic marketing channel for us,” said Alba, who is known for her roles in the television series “Dark Angel” and films like “Fantastic Four.”
“It is where we build a community, and from day one, having that engagement with the community is core to one of our values with what we’re building.”
The initial public offering was priced at $16 per share, giving the company a valuation of $1.44 billion and raising $412.8 million. According to regulatory filings, Honest plans to use the proceeds for general corporate purposes, which could include acquisitions. It will trade on the Nasdaq Exchange using the ticker “HNST.”