Holy Oatly! Oat Milk Firm’s IPO Raises $1.4 Billion

The world’s largest oat milk firm trades underneath ticker OTLY.

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Oatly went public on the Nasdaq inventory alternate on Thursday, capitalizing on surging worldwide demand for its merchandise.

Shares have been initially priced at $17, placing the corporate’s valuation close to $10 billion. The inventory rose to $21 as soon as buying and selling started, a 24% improve, and the Malmo, Sweden primarily based firm predicts extra jumps forward.

Oatly says 35% to 40% of adults within the U.S., the UK, Germany, China and Sweden purchased plant-based milk alternate options up to now three months. 

Associated: How An Odd Macadamia Nut Milk Firm Caught Walmart’s Consideration With out Doing Any Advertising

Worldwide gross sales of plant-based dairy substitutes in 2020 rose to $18 billion, in line with Euromonitor.

However that’s nonetheless solely 3% of the $600 billion dairy market and as Oatly CEO Toni Petersson says, “The runway’s huge.”

Oat milk’s progress is outpacing most opponents. 

U.S. gross sales spiked 131% up to now yr in line with Nielsen — whereas gross sales of soy milk, rice milk and coconut milk fell. Almond milk nonetheless has the biggest gross sales amongst dairy alternate options however oat milk is widespread for a number of causes, says analyst Cara Rasch of market-research agency, Packaged Details. Its delicate and nice taste makes it an ideal addition to coffees — with fewer energy, much less fats, much less ldl cholesterol and fewer sodium than cow’s milk. 

Associated: How the Co-Founding father of Oatly Is Shaking Up the Beverage Trade

Oat milk additionally takes much less vitality and land to supply, making it extra environmentally pleasant, in line with a 2018 Oxford College examine

Oatly’s presence is rising. The product is now on the cabinets at Goal, featured on the menu at Starbucks and out there on-line at Alibaba in China. 

Simply final July the corporate bought a ten% stake for $200 million to a Blackstone investor group that included names like Oprah Winfrey, Actress Natalie Portman and Jay-Z’s leisure firm, Roc Nation.      

Associated: Pour The Vegan Milk: Breakfast Cereals Pivot To Plant-Based mostly, Excessive-Protein, Low-Sugar Choices

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