Jessica Alba's Honest Co valued at nearly $2 billion in strong market debut

Jessica Alba, Nick Vlahos standing in front of a city street: Jessica Alba, actor and businesswoman, Nick Vlahos, CEO of The Honest Company, and Adena Friedman, President and CEO of Nasdaq, pose together during The Honest Company's IPO in New York © Reuters/BRENDAN MCDERMID Jessica Alba, actor and businesswoman, Nick Vlahos, CEO of The Honest Company, and Adena Friedman, President and CEO of Nasdaq, pose together during The Honest Company's IPO in New York

(Reuters) -Jessica Alba's consumer goods company Honest Co was valued at $1.92 billion in its Nasdaq debut, after its shares opened 33% above their offer price on Wednesday.

The company's stock opened at $21.22 per share, compared to the offer price of $16 per share.

On Tuesday, Honest priced its offering of nearly 25.8 million shares at $16 each, above the midpoint of the $14-$17 range it had marketed earlier.

Jessica Alba, Nick Vlahos posing for the camera: Jessica Alba, actor and businesswoman, Nick Vlahos, CEO of The Honest Company, and Adena Friedman, President and CEO of Nasdaq, pose together during The Honest Company's IPO in New York © Reuters/BRENDAN MCDERMID Jessica Alba, actor and businesswoman, Nick Vlahos, CEO of The Honest Company, and Adena Friedman, President and CEO of Nasdaq, pose together during The Honest Company's IPO in New York

The initial public offering raised $412.8 million, a fourth of which would go to the company.

Los Angeles-based Honest's offerings include eco-friendly baby products, vitamins, sunscreen lotions and sanitizers that are sold online and through partnerships with brick-and-mortar stores including Costco and Target.

a man wearing a suit and tie: Nick Vlahos, CEO of The Honest Company, attends his company's IPO in New York © Reuters/BRENDAN MCDERMID Nick Vlahos, CEO of The Honest Company, attends his company's IPO in New York

The company's market debut comes amid a bullish market for IPOs and increased investor interest in sustainable companies.

Plant-based burger maker Impossible Foods is looking to list through a blank-check merger, Reuters reported in April, while sustainable sneaker maker Allbirds is also in talks for an IPO, according to media reports.

Co-founded in 2011 by Alba, known for her roles in "Fantastic Four" and TV series "Dark Angel", Honest is backed by Lightspeed, Fidelity and General Catalyst among others.

The company reported a 28% surge in revenue to $300 million last year, as the COVID-19 pandemic bolstered sales of its cleaning products. Its losses narrowed to $14.5 million from $31.1 million a year earlier.

Jessica Alba looking at the camera: Jessica Alba, actor and businesswoman, attends the IPO of her company, The Honest Company in New York © Reuters/BRENDAN MCDERMID Jessica Alba, actor and businesswoman, attends the IPO of her company, The Honest Company in New York

Morgan Stanley, J.P. Morgan and Jefferies are the lead underwriters for the company's offering.

Jessica Alba et al. posing for a photo: Jessica Alba, actor and businesswoman, poses for photographers with guests and family during the IPO of The Honest Company in New York © Reuters/BRENDAN MCDERMID Jessica Alba, actor and businesswoman, poses for photographers with guests and family during the IPO of The Honest Company in New York

(Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.)

Jessica Alba's Honest Co valued at nearly $2 billion in strong market debut