Jessica Alba’s Honest Company Makes Wall Street Debut and Explodes

Actress Jessica Alba, has taken her hustle from Hollywood and redirected it to becoming a mogul of her own beauty empire.

Alba’s the Honest Co. made its debut on Wall Street on Wednesday and soared almost 40%. The company trades under the ticker symbol “HNST” on the NASDAQ.

The “clean” beauty- and baby-products maker’s stock jumped to $22.19 at 1:13 p.m. in New York after pricing the shares at $16. This was within its marketed range of $14 to $17.

Alba’s roughly 5% stake is valued at $94 million, according to the Bloomberg Billionaires Index. She also has exercisable options valued at about $23 million.

“I was born into a hardworking Mexican-American family. My parents worked multiple jobs, doing whatever it took to get by,” Alba wrote in a letter that was a part of the company’s prospectus.

“By the time I was ten, I became aware of how wellness can define your whole life. That’s never left me,” as she notes on hospital stays growing up as a child.

Alba founded the business in 2011 in order to provide baby products without harsh chemicals. The Honest Co. makes diapers, wipes, shampoo and lotions that it claims as “clean and natural.”

“Over a decade ago, when I had the vision for a business that prioritized people and the planet, the world was different. Building a brand based on conscious consumers was considered niche and not scalable. Transparency and compassion were not the pillars of a successful business,” Alba said in a founder’s letter. “The big businesses and ultimate decision makers for what goes in, on and around us were dominated by a very narrow leadership profile. This may have been the status quo, but I knew it needed to change.”

Los Angeles-based Honest Co. had revenue of about $301 million in 2020, a 28% growth from a year earlier, and an operating loss of $13.5 million.

The company is now valued at $2 billion, or $2.36 billion when fully diluted to include employee stock options and restricted stock units.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.