Oatly is going public at $17 per share, according to a report in the Wall Street Journal, which cited sources familiar with the matter. The company offered 84.4 million shares and the IPO raised $1.43 billion, giving the company a valuation of roughly $10 billion.
The Swedish oat milk maker is set to begin trading on the Nasdaq Stock Market tomorrow under the ticker symbol OTLY. At $17, Oatly is debuting at the high end of its predicted pricing, which it indicated would range between $15 to $17 per share.
An Oatly spokesperson told BevNET they could not confirm the Wall Street Journal report at this time.
According to a Form F-1 registration filed with the U.S. Securities and Exchange Commission on Monday, Oatly sales grew 106% to $421.4 million in 2020. The North American market accounted for 24% of total sales, with Europe, The Middle East and Africa comprising 64% and Asia 13%. The retail channel accounted for 71% of total sales, food service 25% and 4% in other channels.
The company, however, is not profitable and losses increased in 2020 to $60.4 million, up from $35.6 million in 2019. According to the company, much of the loss stemmed from scaling efforts, including investments into growing its distribution and manufacturing facilities, hiring new employees and expanding R&D.
Oatly, citing Nielsen and IRI Infoscan, reported that it was responsible for driving 13% of plant-based milk growth in the U.S. in 2020. According to IRI, the brand’s milks were up 169.3% to $59.1 million in the U.S. for the 52-week period ending March 21, outpacing HP Hood’s Planet Oat which was up 144.4% to $92.5 million.
According to Euromonitor, the $2.5 billion U.S. market for non-dairy milk is expected to reach $3.6 billion by 2025. The global category is expected to surpass $11 billion in the same period, up from $9.5 billion today.
Last year, Blackstone Growth led a $200 million investment round in Oatly, which also included participation from Oprah Winfrey, Natalie Portman, Jay-Z’s Roc Nation and former Starbucks CEO Howard Schultz. While Blackstone’s involvement was initially controversial among some consumers (the firm is invested in a company contributing to deforestation of the Amazon rainforest, in contrast to Oatly’s strong sustainability messaging), the celebrity backing is widely seen by analysts as giving the brand added legitimacy in the mainstream.
A joint venture between Verlinvest and China Resources purchased a majority stake of Oatly in 2016. The company may seek an additional listing on the Hong Kong Stock Exchange in the future.
Oatly’s public listing comes as the U.S. stock market faces multiple days of declines. Three companies expected to begin trading this week — mortgage insurance company Enact, communications platform Zenvia, and Hear.com — delayed their offerings last week due to challenging market conditions. The S&P 500 was down 0.3% at the close of trading today and the DOW Jones Industrial Average was down 0.48%.
In March, Oatly announced it had partnered with New Jersey-based Innovation Foods to open a $45 million, 71,866 sq ft. production facility, with plans to later expand the space to 125,000 sq ft. In addition to growing its U.S. retail business through its oat milk and ice cream alternative dessert lines, the brand has also expanded through partnerships with coffee brands. In February, Intelligentsia unveiled an RTD oat latte line made in collaboration with Oatly.
“The speed and breadth of Oatly’s success on a global scale makes me believe that our approach can make unprecedented things happen,” Oatly CEO Toni Petersson wrote in the filing. “We created the oatmilk phenomenon from scratch across Europe, China and the United States, and our brand is the primary driver of growth for dairy alternatives. Our products and brand have proven success across three continents and multiple channels. The momentum for this movement grows every day, as does my confidence in how Oatly is leading it forward.”