Shares of alternative milk producer Oatly surge on US debut – fr

Shares of alternative milk producer Oatly surge on US debut – fr

Oatly shares jumped 30% during the company’s debut on the U.S. stock market, valuing the alternative milk maker at $ 13 billion (£ 9.2 billion), as investors bet the Dazzling consumer demand for plant-based food alternatives will continue.

Oatly is using the money from the initial public offering to expand its global network of factories, allowing it to quadruple production from 350 million liters of oat milk per year to 1.4 billion in two years. His plans include a large site in Peterborough, East Anglia.

Toni Petersson, chief executive of Oatly, said demand for its oat milk had “exploded completely” during the pandemic, with the company currently experiencing “triple-digit growth on three continents”. The company’s sales doubled from $ 204 million in 2019 to $ 421 million last year, although losses fell from $ 35.6 million to $ 60.4 million.

“We currently have four factories and by the end of 2023 we will have nine,” Petersson said of his plans after the Nasdaq listing. Production constraints meant stores would often sell boxes of Oatly before the weekend, he said, “Demand isn’t an issue… it’s our ability to deliver that’s the thing.

In February, the Swedish company revealed it was working on an IPO and on Wednesday the shares were priced at $ 17. It was at the top of its target range, giving the company an opening valuation of $ 10 billion. He raised $ 1.1 billion in new shares and existing investors took in $ 335 million. At the opening, the shares rose to $ 22.74.

Oatly’s value has skyrocketed over the past year and sales have accelerated, even amid the disruption caused by the pandemic. Last summer, she sold a 10th of the company to a group of investors that included Blackstone, Oprah Winfrey and Jay-Z, but the deal valued the company at just $ 2 billion.

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Listing is a big moment for Oatly who, after decades in the Swedish wilderness, hit the big time with his guerrilla marketing. When a first-time drinker says “It tastes like shit!” The company put it on its box. He’s also struggled with the dairy industry, with Petersson appearing in one of his commercials singing “Wow, no cow! “

Petersson, now a wealthy man due to his 1.5% stake in Oatly, said he and other top executives completed the IPO while working from home in Sweden. He also insisted that despite its transformation into a multibillion pound company, the company will not change.

“Yeah, we’re gonna be super boring,” Petersson joked, before adding, “Our mission, our purpose isn’t going to change. It’s the contrary. With scale, we can have a bigger positive impact on the planet. Its success is based on its ability to connect with consumers and do that “you have to be legitimate,” he added.


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