Oatly (NASDAQ: OTLY) shares rose 27% Thursday after the company made its public market debut on Wednesday. The swedish food brand, which makes alternatives to dairy products from oats, sold 84.4 million American depositary shares for USD17 a share and raised USD1.43 Billion. The IPO values the company at over USD10 Billion.
Just before noon the stock’s opening trade was USD22.12, raising its market value to USD13.1 Billion.
The company is now trading on the Nasdaq under the ticker symbol “OTLY.” Morgan Stanley (MS), JPMorgan Chase (JPM) and Credit Suisse (CS) were the lead underwriters of the companies IPO.
Oatly disclosed 2020 financials that highlighted how its revenue climbed 106% to USD421.4 Million. Furthermore, losses amounted to USD60.4 Million, higher than the previous year’s USD35.6 Million.
“I don’t see anyone else taking that leadership position the way we are,” CEO Toni Petersson said on CNBC’s “Squawk Box” on Thursday. “We are really serious and ambitious about what we’re going to do here.”
Non Dairy milk products have become more popular throughout the years amid health and environmental concerns. Oatly wrote on its website that the food industry is at fault for 25% of global greenhouse gas emissions. Additionally, half of the emissions are produced by the meat and dairy industries.
Ahead of the company’s IPO, an investor drew criticism. Blackston’s made a USD200 Million investment in Oatly in 2020, which sparked controversy as the private equity firm is known for its investments in U.S. oil and gas companies. Nevertheless, Oatly has continuously backed Blackstone.
“We thought that if we could convince them that it’s as profitable (and in the long-term even more profitable) to invest in a sustainability company like Oatly, then all the other private equity firms of the world would look, listen and start to steer their collective worth of 4 trillion U.S. dollars into green investments,” Oatly said on its website.