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(Reuters) -Honest Company Inc, the consumer goods company founded by actress Jessica Alba, priced its initial public offering (IPO) on Tuesday slightly above the midpoint of its indicated range, raising $412.8 million, a person familiar with the matter said.
Honest sold 25.8 million shares at $16 each, the source said, requesting anonymity ahead of an official announcement. The company had previously indicated shares could be sold in the IPO at $14-$17 apiece.
The IPO values Honest at $1.44 billion.
Honest did not immediately respond to a request for comment.
Honest, which counts the likes of Lightspeed, Fidelity and General Catalyst among its backers, sells products including diapers, nursing pillows, vitamins and non-toxic household products. These are sold on Honest.com and through partnerships with brick and mortar stores including Costco (NASDAQ:COST) and Target (NYSE:TGT).
Alba, known for her roles in film “Fantastic Four” and TV series “Dark Angel,” in 2011 co-founded Honest, which touts its baby products as a safer alternative to those that use synthetic chemicals, and remains a shareholder.
But the company came under scrutiny in 2016, when a lawsuit said its products contained a harsh chemical it had pledged to avoid.
Honest then reached a $7.35 million settlement for wrongly labeling ingredients in some products as natural, plant-based or chemical free.
The Los Angeles-based company plans to list its shares on the Nasdaq under the symbol “HNST” on Wednesday.
Morgan Stanley (NYSE:MS), Jefferies (NYSE:JEF) and J.P. Morgan are among the lead underwriters for the offering.
