Oatly Group, a Swedish vegan food company known for its oat milk, announced terms for its IPO on Tuesday.
The Malmo, Sweden-based company plans to raise $1.4 billion by offering 84.4 million ADSs (23% secondary) at a price range of $15 to $17. At the midpoint of the proposed range, Oatly Group would command a market value of $9.5 billion.
Existing shareholders Luxor, Santo Domingo Group, and K2 plan to purchase $135 million in a concurrent private placement. Baillie Gifford intends to purchase $500 million of the IPO (37% of the deal).
Oatly produces a portfolio of plant-based alternatives to dairy products including milks, ice cream, yogurt, cooking creams, spreads, and on-the-go drinks. As of December 31, 2020, the company offered dozens of product lines and varieties across approximately 60,000 retail doors and 32,200 coffee shops worldwide, as well as e-commerce channels. The company recently expanded its production capacity, opening new factories in the Netherlands and US. In 2020, Oatly contributed the highest amount of sales growth to the dairy alternatives drinks category in the UK, Germany, and Sweden, where in addition to the US it is the highest-selling brand in the oat category.
Oatly Group was founded in 1994 and booked $477 million in sales for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol OTLY. Morgan Stanley, J.P. Morgan, Credit Suisse, Barclays, Jefferies, BNP Paribas, BofA Securities, Piper Sandler and RBC Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of May 17, 2021.
