Jessica Alba-backed Honest Company IPO raises $412.8 million

Honest sold 25.8 million shares at $16 each according to sources

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.

Previously Reuters reported that the company said it was planning to use the proceeds from the offering to fund marketing and direct-to-consumer advertising, as well as launch new products and buy complementary businesses.