Actress’ beauty business valued at $1.44bn for its first ever public listing
Honest Beauty, the beauty and consumer goods company founded by actress Jessica Alba, has raised an honest US$412.8m in its first initial public offering (IPO) listing, according to Reuters.
The company sold 25.8 million shares at $16 a piece, the mid to top range of its guideline pricing, which was estimated to be between $14 and $17 before registering last month.
The LA-based business was valued at $1.44bn for its IPO.
Alba’s Honest, where she serves as Chief Creative Officer, was founded in 2008, but was given a product overhaul ten years after its inception.
Today, the group sells skin and cosmetics skus, as well as baby products including nappies and clothing, and household cleaning items.
Alba herself is a significant stakeholder in the business and is reported to own more than 5.6 million shares, which are said to be worth just shy of $130m.
Honest said that it would use the proceeds to fund marketing and direct-to-consumer advertising, as well as new launches and new business takeovers.
The L Catterton-backed group was also due to list 6.5 million shares of common stock on the Nasdaq under the symbol ‘HNST’ yesterday.
Meanwhile, stockholders are offering 19.4 million shares of common stock.
Honest backers include Morgan Stanley, Jefferies and J.P. Morgan, who were among the lead underwriters for the offering.