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Oprah-backed Oatly raises $1.4 billion in IPO By Reuters 



© Reuters. FILE PHOTO: Oprah Winfrey takes half within the Girls In The World Summit in New York Metropolis, U.S., April 10, 2019. REUTERS/Caitlin Ochs/File Picture

By Echo Wang and Anirban Sen

(Reuters) -Swedish vegan milk maker Oatly Group AB, which counts celebrities Oprah Winfrey and Natalie Portman amongst its backers, raised $1.4 billion in its U.S. preliminary public providing on Wednesday, the corporate mentioned in a press release.

The corporate, whose buyers additionally embrace rapper Jay Z and former Starbucks Corp (NASDAQ:) head Howard Schultz, mentioned it priced 84.4 million American depositary shares within the preliminary public providing at $17 every, on the prime of its indicated vary. This means a valuation for the corporate of $10 billion.

Oatly’s share sale comes in the midst of a vital juncture for the U.S. IPO market, which is dealing with vital volatility attributable to inflation fears which have compelled buyers to desert high-growth shares, specializing in worth shares as an alternative.

The end result of choices this week is being watched for clues on the near-term way forward for the U.S. capital markets, which have witnessed a surprising rally over the previous 15 months as share gross sales of a whole lot of corporations, together with massive names similar to Airbnb, Snowflake and DoorDash, breached all-time data.

Final week, not less than three IPOs, together with mortgage insurer Enact Holdings Inc and listening to care providers firm Hear.com, had been pulled attributable to uneven market circumstances.

The Malmö, Sweden primarily based maker of dairy options sells its merchandise in additional than 20 markets throughout Europe, the US and China. Recognized primarily for its oat milk merchandise, it has tie-ups with a number of cafes in the US, together with Starbucks. It additionally sells its merchandise on-line and thru meals retailers like Goal Corp (NYSE:) and Tesco (OTC:).

The inventory market itemizing comes at a time when the plant-based meals sector continues to draw mainstream investor consideration, particularly as fast-food chains and upscale eating places create new menus to attract in well being and environment-conscious diners.

A lot of the demand for plant-based meals is being led by millennials and technology Z customers, who’re greater than keen to spend on sustainable merchandise which might be additionally wholesome.

Final 12 months, Oatly, based by brothers Rickard and Björn Öste in 1990, raised $200 million in a star-studded funding spherical led by personal fairness agency Blackstone Group (NYSE:) and together with Winfrey, Portman, an leisure firm based by Jay Z and Schultz.

Oatly’s greatest shareholder is a partnership between Belgian funding agency Verlinvest and an entity known as Blossom Key Holdings, which is managed by China Sources Co Ltd, a Chinese language government-owned firm.

Verlinvest is the funding firm of the household behind brewer Anheuser-Busch InBev. Non-public fairness agency Blackstone additionally owns a large stake in Oatly.

Morgan Stanley (NYSE:), J.P.Morgan and Credit score Suisse (SIX:) are among the many lead underwriters for the providing.

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