OTLY starts trading on the Nasdaq
Oatly shares climbed 27% when the company debuted on the public market on Thursday.
The stock’s opening trade was $ 22.12 just before noon, giving it a market value of $ 13.1 billion. On Wednesday evening, the Swedish company valued its US IPO at $ 17 per share, high of its stated range, raising $ 1.4 billion. At that price, the implicit valuation is $ 10 billion, well above the current market value of another company specializing in the manufacture of animal product substitutes, Beyond meat. The oat milk maker trades on the Nasdaq under the ticker symbol “OTLY”.
Oatly debuted in the United States in coffee shops five years ago, building a strong following for its oat-based milk substitute. The company has worked to get baristas and coffee drinkers hooked on the creamy texture of oat milk and its ability to froth before hitting grocery stores. Since then, oat milk sales have increased, more than tripling in 2020, according to Nielsen data. However, almond milk ranks first for dairy substitutes.
Oatly has also expanded its portfolio by branching out into ice cream and oat-based yogurt.
In 2020, Oatly’s revenue more than doubled, reaching $ 421.4 million. Foodservices accounted for a quarter of sales and retailers accounted for the remainder. The company reported a net loss of $ 60.36 million as it focused on entering new markets, brand awareness and expanding production.
“I don’t see anyone else taking this leadership position like we are,” CEO Toni Petersson told CNBC. “Squawk Box” Thursday. “We’re really serious and ambitious about what we’re going to do here.”
Oprah, Natalie Portman and former Starbucks CEO Howard Schultz are some of the big names who have invested in Oatly. State-backed China Resources took a controlling stake in the company in 2016 through a joint venture with Belgium’s Verlinvest, and Blackstone invested $ 200 million in the company last year, which it gave approximately 10% stake.
Oatly has said in regulatory documents that he plans to use the proceeds of the IPO for working capital, to fund incremental growth and other general corporate purposes.