Oatly shares closed more than 18% the day after the company’s public debut on Thursday.
The stock’s opening trade just before noon was $ 22.12, which equates to a market value of $ 13.1 billion and the stock was 30% above the market price. The stocks lost some of those gains in the minutes after the first trade.
On Wednesday evening, the Swedish company valued its US IPO at $ 17 per share, raising $ 1.4 billion. At that price, the implied valuation is $ 10 billion, well above the current market value of another company that specializes in the manufacture of substitutes for animal products. Beyond meat. The oat milk manufacturer trades on the Nasdaq under the ticker “OTLY”.
Oatly made its U.S. debut in coffee shops five years ago and built a strong following for its oat-based milk substitute. The company focused on convincing baristas and coffee drinkers of the creamy texture and foaming ability of oat milk before it hit grocery stores. Since then, sales of oat milk have more than tripled in 2020, according to Nielsen. Even so, almond milk holds the top spot when it comes to milk substitutes.
Oatly has also expanded its portfolio to specialize in oat-based ice cream and yogurt.
In 2020, Oatly sales more than doubled to $ 421.4 million. A quarter of sales came from the catering service, the rest from retailers. The company posted a net loss of $ 60.36 million as it focused on entering new markets, building brand awareness and expanding production.
“I don’t see anyone in this leadership position as we do,” said CEO Toni Petersson of CNBCs “Squawk Box” on Thursday. “We are very 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. The state-backed company China Resources took over a majority stake in the company in 2016 as part of a joint venture with the Belgian Verlinvest. Blackstone invested $ 200 million in the company last year, giving the company a roughly 10% stake.
Oatly said in regulatory filings that he plans to use the IPO proceeds for working capital to fund incremental growth and other general corporate purposes.