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Oatly Group AB (NASDAQ:OTLY, OTLY:US), a Swedish plant-based dairy producer, has finally debuted on the American public markets after a long-awaited initial public offering (IPO).
The vegan milk manufacturer raised gross proceeds worth US$ 1.4 billion from its IPO, offering 84.3 million American Depositary Shares (ADS) at a price of US$ 17 apiece.
Oatly Stock Price, IPO Details & Valuation
Oatly’s stocks debuted on the Nasdaq Global platform on Thursday, May 20, labeled under the ticker of ‘OTLY’.
Its valuation touched US$ 10 billion at its IPO, as per Crunchbase.
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The stocks opened over 30 per cent higher than their IPO price, at US$ 22.12. After a full day of trading on Nasdaq, the shares closed at US$ 20.2 on Thursday, up by about 19 per cent from the IPO price.
On Friday, Oatly’s scrip was up over eight per cent against its previous close (2.07PM EST).
The oats milk maker had raised about US$ 200 million in a round of funding in July 2020, as per Crunchbase. In total, the Swedish company is said to have raised about US$ 241.4 million over five rounds of funding.
So, where does this company stand post IPO? Let’s find out:
Oatly Group AB (NASDAQ:OTLY, OTLY:US)
With more people becoming health and environment conscious, the market for plant-based products has noted a rise recently. This has led to an increase in the popularity of products like Oatly’s plant-based milk products.
The company’s products are much in demand in the US in cafe chains like Barista and Starbucks. Europe and China also contribute to some of the company’s sales.
With big names like Oprah Winfrey, Starbucks founder Howard Schultz and rapper Jay Z reportedly backing the company, it has garnered interest among people as one of the healthier options available in the market. This may continue to attract consumers worldwide.
However, like most sectors, consumers of the vegan food industry too are spoilt for choice.
Industry experts point that one of the key downsides for plant-based dairy producers include the pattern where consumers quickly move from one option to the other. The plant-based milk market is already crowded, with quite a few also trading on the public markets, such as Beyond Meat.
Oatly’s current market majorly consists of household consumers and restaurant chains. However, reports suggest that supply shortage of its products has been a challenge amid the pandemic.
Thus, the ability of the Swedish company to meet the rising demand for vegan milk going forward could be a key factor in its future stock performance.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
