In a statement, actress Jessica Alba founded Honest Company Inc said, it has priced its initial public offering (IPO) slightly above the midpoint of its indicated price range, raising $412.8 million.
Late on Tuesday, the company said it had sold 25.8 million shares at $16 each. Previously Honest had indicated that its shares could be sold in the IPO in the range of $14-$17 per share.
The IPO values Honest at $1.44 billion.
Backed by the likes of Fidelity, Lightspeed, and General Catalyst, Honest sells products including diapers, nursing pillows, vitamins and non-toxic household products on its portal Honest.com and through partnerships with brick-and-mortar stores including Costco and Target.
Alba co-founded Honest, which touts its baby products as a safer alternative to those that use synthetic chemicals, and is a shareholder. In 2016, the company came under scrutiny following the filing of a lawsuit which alleged that its products contained a harsh chemical it had pledged to avoid.
Honest reached a $7.35 million settlement for wrongly labeling ingredients in some products as natural, plant-based or chemical free.
Los Angeles-based Honest plans to list its shares on the Nasdaq under the symbol “HNST” on Wednesday.
Honest is offering 6.5 million shares of common stock. Stockholders named in the prospectus are offering 19.4 million shares of common stock. J.P. Morgan, Morgan Stanley, and Jefferies are among the lead underwriters for the offering.