How To Invest In Oatly Shares IPO
New IPO: Oatly is a Swedish based manufacturer of oat based products including oat milk, yoghurt & ice cream.
According to a filing on 11th May the Company whose investors include Oprah Winfrey, rapper Jay Z and former chairman of Starbucks Howard Schultz intends to offer up to 65 million American Depositary Shares and an additional 20 million shares from existing shareholders. Pricing is expected to be between $15 and $17.
This values the Company at approximately $10 billion.
The public offering is expected to raise $1.43 billion.
Oatly was founded back in 1994 and distributes its products in over 20 countries including retailers such as Tesco and online retailers such as Alibaba.
Oatly’s Pre-IPO Financial Performance
Oatly has a 53% share in the grain milk market in Sweden, Nielsen reports. The company also posts growth in its key distribution market, namely in the UK, the US, and Germany. In 2020 alone, the sales went up by 99% in the UK, by 182% in the US, and by 199% in Germany, compared to 2019.
The overall sales amounted to $421.40M in 2020, which is 106.50% more compared to 2019. The gross profit was at $129.20M in 2020, while the losses are still at $60.40M because of further investment into the company development, which includes expansion to new markets, manufacturing, and brand awareness.
Oatly IPO Outlook and Target Market
Oatly management believe the company’s products are at the forefront of the global dairy product transformation industry. In 2020, this market was valued at $600B. The food industry will be changing, the management affirms, focusing mostly on vegetable based products. This should be driven by millennials and Gen Z people that care for healthy food and for the environment.
Oatly is growing very fast because of its expansion strategy, which already proved efficient in China. Oatly started operating in the Chinese market in 2018 by promoting its products through coffee and tea shops using speciality class products.
The brand thus became very popular which led to an agreement with Alibaba and Starbucks. In two years alone, Oatly managed to increase its sales by 450%, while the number of stores and shops with Oatly products amounted to 9,500 by December 31, 2020.
How to Trade Oatly IPO
Interested in investing in the Oatly IPO?
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We recommend you opening an investment account right away: the account verification process after that may take some time, and you may miss it, as the exact Oatly IPO date will be known just a few days before the trading starts.
Please note: Oatly is not yet a public company. Sign up now through Freedom 24 and they will notify you once the security issue memo is available and investing into Oatly stock is possible.
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