- Oatly stock (NASDAQ: OTLY) soared 22.97% to US$20.9 at 2:48 pm ET on Thursday, May 20.
- Oatly raised US$1.4 billion from 84.4 million American depositary shares at an offering price of US$17 apiece on Wednesday, bringing its valuation to US$10 billion.
- Oatly products include vegan milk, cheese, yogurt, and lattes that are available at 50,000 locations in 20 countries.
The stock of plant-based Swedish food company Oatly Group AB (NASDAQ: OTLY) soared 22.97% to US$20.9 at 2:48 pm ET on Thursday, May 20, in stock market debut.
Oatly raised US$1.4 billion from 84.4 million American depositary shares at an offering price of US$17 apiece on Wednesday, bringing its valuation to US$10 billion.
Oatly was founded by brothers Rickard Oste and Bjorn Oste in 1994. It is one of the world’s largest oat milk companies. The company turns the rich oat fibre into liquid food developed by scientists at the Lund University in Sweden.
Its products include vegan milk, cheese, yogurt, and lattes, which are available at 50,000 locations in 20 countries.
Oatly is the sole provider of oat milk to Starbucks in the US and Canada. Starbucks founder Howard Schultz is one of the supporters of the company.
Oatly’s popularity has grown in recent times as more and more consumers take to plant-based milk products for environmental reasons. Celebrities like Natalie Portman, Oprah Winfrey, and private equity funds, such as Blackstone Group, have invested in the company.
The Swedish company reported losses of US$60.4 million in 2020, up around 35%, compared with US$35.6 million in 2019.
However, its revenue surged from US$204 million in 2019 to US$421.4 million in 2020. Its sales jumped 66% in Q1 of 2021, compared with the figures in the year-ago period. Oatly had 792 employees in 2020.
The company’s main selling point is its plant-based milk products. These are marketed as environmental-friendly health products that do not cause greenhouse gas emissions, witnessed in some traditional dairy farming practices. The company wants to cash in from the social and environment-conscious consumers looking for a sustainable lifestyle.
Also read: How Factory Farming Affects Human Health
How are plant-based food companies performing?
Laird SuperFood (LSF), another plant-based food company, went public in September 2020 at an offering price of US$22 per share. The stock gained nearly 50% over the months. It was trading at US$32.905 at 3:39 pm ET on Thursday, up 3.93% from the previous close.
Plant-based food stocks have been gaining traction in recent times.
Beyond Meat (BYND), which produces plant-based meat products, went public in May 2019 at an offering price of US$25 per share. The stock has grown manifold since. It was trading at US$107.62 at 3:46 pm ET on Thursday, May 20, which was an increase of 3.68%.