Oatly shares ended the day up greater than 18% after the corporate’s public market debut Thursday.
The inventory’s opening commerce was $22.12 simply earlier than midday, giving it a market worth of $13.1 billion and placing shares about 30% above the preliminary public providing worth. Shares misplaced a few of these beneficial properties within the minutes following the primary commerce.
On Wednesday night time, the Swedish firm priced its U.S. preliminary public providing at $17 per share, on the high of its indicated vary, elevating $1.4 billion. At that worth, the implied valuation is $10 billion, properly above the present market worth of one other firm that focuses on making substitutes for animal merchandise, Past Meat. The oat-milk maker is buying and selling on the Nasdaq underneath the inventory ticker “OTLY.”
Oatly made its U.S. debut in espresso outlets 5 years in the past, constructing a robust following for its oat-based milk substitute. The corporate targeted on getting baristas and low drinkers hooked on oat milk’s creamy texture and talent to froth earlier than pushing into grocery shops. Since then, oat milk gross sales have surged, greater than tripling in 2020, based mostly on Nielsen knowledge. Nonetheless, almond milk holds on to the highest spot for dairy substitutes.
Oatly has additionally been increasing its portfolio, branching out into oat-based ice cream and yogurt.
In 2020, Oatly’s income greater than doubled, reaching $421.4 million. Meals service accounted for 1 / 4 of gross sales, and retailers accounted for the remaining. The corporate reported a internet lack of $60.36 million because it targeted on coming into new markets, constructing model consciousness and increasing manufacturing.
“I do not see anybody else taking that management place the best way we’re,” CEO Toni Petersson mentioned on CNBC’s “Squawk Field” on Thursday. “We’re actually severe and bold about what we’ll do right here.”
Oprah, Natalie Portman and former Starbucks CEO Howard Schultz are among the many massive names who’ve invested in Oatly. State-backed China Assets took a majority stake within the firm in 2016 via a three way partnership with Belgium’s Verlinvest, and Blackstone invested $200 million within the firm final 12 months, giving the agency a stake of about 10%.
Oatly mentioned in regulatory filings that it plans to make use of the IPO proceeds for working capital, to fund incremental development and different common company functions.