Swedish Food Company Oatly shares ended the day up more than 18% after the company’s public market debut on Thursday. The stock’s opening trade was $22.12 just before noon, giving it a market value of $13.1 billion and putting shares about 30% above the IPO price. Shares lost some of those gains in the minutes following the first trade.
On Wednesday night, the Swedish Food Company priced its U.S. IPO at $17 per share, at the top of its indicated range, raising $1.4 billion. The implied valuation is $10 billion, well above the current market value of another company that specializes in making substitutes for animal products, Beyond Meat. The oat-milk maker is trading on the Nasdaq under the stock ticker.
Oatly made its U.S. debut in coffee shops five years ago, building a strong following for its oat-based milk substitute. The company focused on getting baristas and coffee drinkers hooked on oat milk’s creamy texture and ability to froth before pushing into grocery stores. According to the Nielsen data, Oat milk sales have surged, more than tripling in 2020. Almond milk holds on to the top spot for dairy substitutes.
Toni Petersson, CEO of Oatly said that he doesn’t see anyone else taking that leadership position the way we are. They are serious and ambitious about what we’re going to do here. Swedish Food Company Oatly said in regulatory filings that it plans to use the IPO proceeds for working capital, to fund incremental growth and other general corporate purposes