How To Invest In Oatly Shares

 Oatly is a Swedish based manufacturer of oat based products including oat milk, yoghurt & ice cream.How To Invest In Oatly Shares Fair Investment

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 buy Oatly shares

You will need a trading account to invest.

  1. Select a share platform – See below our top platform picks
  2. Open your share account – To do this you will need your bank details and national insurance number
  3. Fund your account – You will need to fund your a/c with a debit or credit card or bank transfer
  4. Search for the stock code – Type in the stock code into the search box
  5. Check out the latest info and price for the selected share – Some platforms offer free research and analysis
  6. Buy the share – Nice and easy!

Share Dealing Comparison

Trading Platforms:Features:Cost Per Trade From:*Min Deposit:Go To Site:
How To Invest In Oatly Shares Fair InvestmenteToro open a free share trading account. Free access to TipRanks expert share analysis.0% commission$50See Deal »
How To Invest In Oatly Shares Fair InvestmentFineco Bank has 1.3 million clients. No inactivity charges.£2.95 UK shares£0See Deal »
How To Invest In Oatly Shares Fair InvestmentFreedom 24 offer lowest fees in Europe. Listed on NASDAQ. €2.25€2,500See Deal »
How To Invest In Oatly Shares Fair InvestmentHargreaves Lansdown The UK's #1 broker. Price improvement service helps you get the best price for your shares.£5.95£25See Deal »
How To Invest In Oatly Shares Fair InvestmentAJ Bell offers overseas trading in 24 international markets.£1.50£25See Deal »
How To Invest In Oatly Shares Fair InvestmentInteractive Investor are the UK's #1 flat fee platform. Over 350,000 customers.£7.99£1See Deal »
*Please note that additional fees may be applied by platform providers for their services. Capital at risk.

IMPORTANT:

No news, feature article or comment should be seen as a personal recommendation to invest. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular plan. If you are at all unsure of the suitability of a particular product, both in respect of its objectives and its risk profile, you should seek independent financial advice.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 67%-71% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

Written by James Caldwell ,
12th May 2021