The Honest Company IPO makes Jessica Alba US$122 million – actress ‘clean beauty’ company sees stock soar 44 per cent on debut
- Alba, 40, founded the business in 2011, motivated by the dearth of baby products that were free of harsh chemicals
- The company’s stock closed at US$23 on Wednesday after it priced the shares at US$16 in its initial public offering. That makes it worth almost US$2.1 billion
Actress Jessica Alba cemented her claim to one of the most lucrative side gigs in Hollywood after shares of her beauty business, The Honest Company, soared 44 per cent in its market debut.
The “clean” beauty- and baby-products maker’s stock closed at US$23 on Wednesday after it priced the shares at US$16 in its initial public offering (IPO). Alba’s roughly five per cent stake is valued at US$98 million, according to the Bloomberg Billionaires Index. She also has exercisable options valued at about US$24 million.
“I feel like I’m in a dream, to be honest. Wow. Is this really happening?” Alba said in an interview. “I’m so grateful to our very loyal community. Thank you for bringing us into your home. Thank you for trusting us with your most precious people, your little people.”
The Los Angeles-based company is now valued at almost US$2.1 billion, or US$2.45 billion when fully diluted to include employee stock options and restricted stock units. That’s significantly more than its US$860 million implied valuation in a 2017 funding round, according to financial data provider Pitchbook.
