Oatly Group AB joins market with US$10bn valuation


The group is backed by a roster of celebrities, including Oprah Winfrey and Jay-Z

AB () has started trading on Wall Street on Thursday after raising US$1.4bn in its IPO.

The oat milk brand priced 84mln shares at US$17 a pop, which was at the top of its range, implying a market cap of US$10bn.

READ: Swedish oat milk brand Oatly prepares Nasdaq IPO

The Swedish company was founded 25 years ago but has enjoyed a boom in trading recently, as consumers worldwide seek more sustainable alternatives to cow milk. Plant-based options are also perceived to be healthier.

Headquartered in Malmö, Sweden, its oat-based milk and related products, such as yoghurt and ice cream, are sold in more than 20 countries globally.

The group is backed by a roster of celebrities, including Oprah Winfrey and Jay-Z, and institutions such as Belgian investor Verlinvest, state-owned China Resources and Nordics venture capital firm Industrifonden.

However, it’s a crowded market for milk alternatives, with consumer goods giant Nestlé launching its pea-based drink Wunda earlier this month.

Oatly could also be joined by Chobani, which makes yoghurt and oat-based milk, on the stock market later this year, with the Wall Street Journal reporting a mooted US$7-10bn IPO.

In Europe, Paris-listed owns the Alpro range, while () has made vegan versions of its Magnum and Swedish Glace ice cream among its plant-based options.





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