Swedish oat-milk maker Oatly Group AB’s preliminary public providing priced at $17 a share, on the excessive finish of expectations, a optimistic signal for the corporate amid risky stock-market buying and selling.
Oatly’s IPO raised $1.43 billion, and the $17 price ticket—first reported by The Wall Avenue Journal—gave the celebrity-backed firm a valuation of roughly $10 billion. Oatly had set its sights on elevating between $1.27 billion and $1.43 billion by promoting roughly 84.4 million American Depositary Shares at a worth of $15 to $17 apiece, in line with a regulatory submitting. The proceeds will go to the corporate and promoting shareholders.
Oatly’s inventory will start buying and selling on the Nasdaq Inventory Market on Thursday beneath the image OTLY.
Pricing on the excessive finish of the vary is an encouraging signal for Oatly, particularly as a result of going public has proved powerful for a number of corporations not too long ago. The stock market has taken a turn lower on fears of inflation, and traders have more and more shied away from the forms of progress corporations that usually go public. The Nasdaq Composite Index, chock-full of progress corporations, has fallen 4.8% to this point in Could.
Final week, not less than three corporations postponed their IPOs due to volatility within the inventory market. On Wednesday, website-development firm
shares made their debut on the New York Inventory Trade at a level far below their last financing round, then proceeded to fall additional via the afternoon.
The S&P 500 ended Wednesday down 0.3%, recovering a few of its losses from earlier within the buying and selling session.
Oatly and its lead underwriters, which embody
& Co. and Credit score Suisse, hoped as a result of the corporate is a shopper identify fairly than a expertise firm, it may sidestep a number of the weak point within the broader market, in line with individuals acquainted with the matter.
Oatly boasts famous investors together with
in addition to private-equity big
Blackstone Group Inc.
and lead investor Verlinvest. In July, Oatly introduced a deal to promote a ten% stake to the group of celebrities and Blackstone for $200 million, valuing the corporate at $2 billion.
Oat milk’s recognition has soared not too long ago. Its rise has been a part of a shift amongst shoppers towards extra plant-based meals, much like these produced by plant-based meat firm
Beyond Meat Inc.
Nonetheless, Oatly’s losses have widened, in line with regulatory filings. Its internet loss in 2020 was $60.4 million, in contrast with $35.6 million the earlier 12 months. Income is rising considerably. In 2020, it greater than doubled to $421.4 million from $204 million a 12 months earlier.
One theme within the firm’s pitch is its environmental and social angle—how consuming oat milk as in comparison with cow’s milk leads to much less greenhouse-gas emissions, much less land utilization and fewer vitality consumption.
Partially due to this focus, the corporate hoped it might appeal to curiosity from funds targeted on environmental, social and governance, or ESG, points, notably these in Europe, the place Oatly relies, in line with individuals acquainted with the matter.
“We established Oatly as a company devoted to bettering the lives of people and the well-being of the planet via the push for a extra sustainable meals system,” the corporate wrote in its IPO submitting. “To handle the worldwide challenges we’re all dealing with, scrumptious, wholesome and sustainable plant-based foods and drinks should develop into a matter in fact for everybody.”
Write to Corrie Driebusch at firstname.lastname@example.org
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Appeared within the Could 20, 2021, print version as ‘Oat-Milk Maker Oatly Costs IPO at Excessive Finish.’