Oatly Boasts Banner Day for IPO

Thursday, May 20, 2021 Oatly Boasts Banner Day for IPO Swedish vegan milk maker Oatly Group, which counts celebrities Oprah Winfrey and Natalie Portman among its backers, raised $1.4 billion in its U.S. initial public offering on Wednesday, the company said in a statement. The company, whose investors also include rapper Jay Z and former Starbucks (NASDAQ:SBUX) head Howard Schultz, said it priced 84.4 million American depositary shares in the initial public offering at $17 each, at the top of its indicated range. This implies a valuation for the company of $10 billion. Oatly’s share sale comes in the middle of a crucial juncture for the U.S. IPO market, which is facing significant volatility due to inflation fears that have forced investors to abandon high-growth stocks, focusing on value stocks instead. The outcome of offerings this week is being watched for clues on the near-term future of the U.S. capital markets, which have witnessed a stunning rally over the past 15 months as share sales of hundreds of companies, including big names such as Airbnb (NASDAQ:ABNB), Snowflake (NYSE:SNOW) and DoorDash (NYSE:DASH), breached all-time records. Last week, at least three IPOs, including mortgage insurer Enact Holdings and hearing care services company Hear.com, were pulled due to choppy market conditions. The Malmö, Sweden-based maker of dairy alternatives sells its products in more than 20 markets across Europe, the United States and China. Known primarily for its oat milk products, it has tie-ups with several cafes in the United States, including Starbucks. It also sells its products online and through food retailers like Target Corp (NYSE:TGT) and Tesco. The stock market listing comes at a time when the plant-based food sector continues to attract mainstream investor attention, especially as fast-food chains and upscale restaurants create new menus to draw in health and environment-conscious diners.
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