May 14, 2021

Plant-based milk company Oatly seeking US$10 billion valuation in US IPO

Plant-based milk company Oatly is seeking a US$10 billion valuation in its initial public offering, as demand grows for plant-based dairy products, Reuters reported.

Oatly, which has investors such as Oprah, rapper Jay-Z, and former Starbucks head Howard Schultz, aims to offer 5 million American Depositary Shares and an additional 20 million shares from existing shareholders. These will be priced between US$15 to US$17 per share.

The company aims to raise US$1.43 billion through the IPO.

Starbucks has recently added Oatly milk beverages to their menu, an Iced Brown Sugar Oatmilk Shaken Espresso and Honey Oatmilk Latte.

Oatly, the biggest oat milk company globally, said it will use proceeds from the IPO to clear debt and expand further. The company sells its products at more than 7,500 retail stores and 10,000 coffee shops in the United States. It entered the market in 2017.

Oatly, which is based in Sweden, will list its shares under "OTLY" on the Nasdaq.

- Reuters