Vegan milk brand Oatly eyes US$10 billion US IPO

12 May 2021 --- Vegan milk firm Oatly, which is backed by high-profile investors including Oprah Winfrey, Jay Z, Natalie Portman and Starbucks Corp head Howard Schultz is aiming for a valuation of approximately US$10 billion as it commences its US public offering.

The move comes amid increasing popularity for dairy-free milk as consumers shift preferences toward plant-based, nutritional products. 

A statement from the Swedish brand says: “Oatly Group AB has commenced an initial public offering of 84,376,000 American Depositary Shares (ADSs), each representing one ordinary share offered by Oatly and certain selling shareholders.”

“The underwriters of the offering will also have a 30-day option to purchase up to an additional 12,656,400 ADSs from the selling shareholders at the initial public offering price.”

The initial public offering price is currently estimated to be between US$15.00 and US$17.00 per share, continues the statement. 

Oatly has also applied to list its ADSs on the Nasdaq Global Select Market under the ticker symbol “OTLY.”

Oatly’s IPO comes amid increasing popularity for dairy-free milk as consumers shift preferences toward plant-based, nutritional products.Morgan Stanley, J.P. Morgan and Credit Suisse are acting as lead book-running managers for the offering. Barclays, Jefferies, BNP PARIBAS, BofA Securities, Piper Sandler and RBC Capital Markets are acting as book-running managers. 

The oat drink company exclusively focuses on developing expertise around oats, deemed a global “power crop” with inherent properties suited for sustainability and human health. 

Oatly says that its commitment to oats has resulted in core technical advancements that enabled the company to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams and spreads. 

Headquartered in Malmö, Sweden, the Oatly brand is available in more than 20 countries globally.

Last September, Starbucks began targeting eco-conscious consumers by rolling out more plant-based offerings in selected stores across Asia. The plant-based range includes products from meat substitute giants Impossible Foods and Beyond Meat as well as Oatly. The move is part of the coffee giants’ plant-based focus, which continues to expand in global markets.

The coffee behemoth said it was introducing products in markets including Hong Kong, Singapore, New Zealand, Taiwan and Thailand that suit local tastes and preferences.

IPOs in the plant-based space
Oatly follows in the footsteps of other plant-based companies that have gone public such as alternative meat company Beyond Meat, which had its IPO in 2019, and Laird Superfood, which listed on the NYSE last year.

Meanwhile, Greek yogurt giant Chobani is reportedly considering going public this year, as is plant-based egg maker and cell-based meat developer Eat Just.

In March, the vegan milk maker also unveiled plans for one of the world’s largest plant-based dairy factories to be based in the UK. 

The plant is expected to produce 300 million liters of oat milk per year, rising to 450 million liters annually, and comes as the Swedish oat drink company pursues a potential IPO in the US. Oats will be sourced locally across the UK, and the factory will supply the UK market.

Edited by Gaynor Selby