Jessica Alba is officially a mogul.
On Wednesday, the “L.A.’s Finest” star took the Honest Company public, raising a whopping $413 million in its IPO, with stocks closing at $23 per share by the end of the trading day.
According to The Hollywood Reporter, regulatory findings indicate that Alba owns more than 5.6 million shares in the company, which she founded in 2011 and was valued at more than $1.4 billion in its IPO. Given her stake in the company, those shares are currently valued at just under $130 million.
In addition to her shares in the company, which manufactures baby products and skin-care items, Alba will also receive a one-time $2.6 million dividend. She will also continue to run the company; on April 26 she signed a new deal with the Honest Company that will pay her a $700,000 annual salary starting in 2022, along with an annual cash bonus of up to $500,000 and other perks.
As THR reports, the IPO prospectus stated that “we believe that the success of our brand depends in part on our ongoing affiliation with Jessica Alba,” noting the company’s intention to keep retaining her services. “The loss of the services of Ms. Alba, or the loss of our ability to use Ms. Alba’s likeness, could have an adverse effect on our business, financial condition, results of operations and prospects.”
The long-term plan, the prospectus added, is to transform the Honest Company into a truly global brand. “We plan to accelerate our growth outside the United States by leveraging the Honest brand and global reach of Jessica Alba,” the prospectus reads. “We plan to prioritize markets where consumer trends towards clean, ingredient-led products in our categories are accelerating.”
“Your company is going to be estimated at about 1.4 billion. When you were little did you ever see this happening?” Barrymore asked Alba.
“No, I mean I had this idea to create this company because it just made sense that people shouldn’t have to choose between what works and what’s good for them,” she explained. “And putting people’s health and wellness and thinking about the planet and sustainability, and then also like diversity and inclusion and representation. And all of those values to me is really I think why we’ve been able to take the business to this point.”
For Alba, taking her company public wasn’t the endgame, but “the beginning of our next chapter and I’m just with my kids and my husband, it’s been such a journey getting to this point and I’m just thrilled. And I hope that you know when our kids, when our girls are grown there’s a lot more of people that look like us that are in this position because we’re still so under-represented in an all of business, in government and all these and all these different ways. I hope that by me being here it’s like a little tiny step and chip away, by you being here chip away right and so let’s do our part and just making sure we end up making it easier for everyone.”