Honest Company Raises $412 Million From its IPO

U.S based consumer goods company Honest Company Inc. (HNST) announced having raised $412.8 million from its initial public offering. This was slightly higher that what the company was expecting from the IPO.

In the IPO, Honest was selling its shares at $16 apiece floating 25.8 million shares in total. Initially, the company has said that it would be selling its shares at $14 to $17 per share in the IPO.

This IPO leaves the Jessica Alba backed company, with a market valuation of $1.44 billion. The actress who is famous for her roles in movies such as ‘Fantastic Four’ and ‘Dark Angel’ co-founded the company in 2011.

The company engages in selling beauty products, baby products among other consumer goods. In 2016, the company was under immense scrutiny after a lawsuit was filed claiming its products contain a harsh chemical.

The company had earlier pledged to avoid the chemical, Honest finally reached a $7.35 million settlement for using wrong labels in some products such as chemical free, natural and plant-based.

 

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