Swedish vegan milk maker Oatly Group, which counts celebrities Oprah Winfrey and Natalie Portman among its backers, raised $1.4 billion in its U.S. initial public offering on Wednesday, the company said in a statement.
The company, whose investors also include rapper Jay Z and former Starbucks (NASDAQ:SBUX) head Howard Schultz, said it priced 84.4 million American depositary shares in the initial public offering at $17 each, at the top of its indicated range. This implies a valuation for the company of $10 billion.
Oatly’s share sale comes in the middle of a crucial juncture for the U.S. IPO market, which is facing significant volatility due to inflation fears that have forced investors to abandon high-growth stocks, focusing on value stocks instead.
The outcome of offerings this week is being watched for clues on the near-term future of the U.S. capital markets, which have witnessed a stunning rally over the past 15 months as share sales of hundreds of companies, including big names such as Airbnb (NASDAQ:ABNB), Snowflake (NYSE:SNOW) and DoorDash (NYSE:DASH), breached all-time records.
Last week, at least three IPOs, including mortgage insurer Enact Holdings and hearing care services company Hear.com, were pulled due to choppy market conditions.
The Malmö, Sweden-based maker of dairy alternatives sells its products in more than 20 markets across Europe, the United States and China. Known primarily for its oat milk products, it has tie-ups with several cafes in the United States, including Starbucks. It also sells its products online and through food retailers like Target Corp (NYSE:TGT) and Tesco.
The stock market listing comes at a time when the plant-based food sector continues to attract mainstream investor attention, especially as fast-food chains and upscale restaurants create new menus to draw in health and environment-conscious diners.
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