ICP Oatly

Financial advisors at Ingerson Capital Partners have reviewed the Oatly Group's initial public offering and how it could be the biggest plant-based food company to go public this year. It will follow in the footsteps of several plant-based enterprises that have made successful market debuts in recent years, the most notable of which is Beyond Meat. Oatly, on the other hand, is the only plant-based food company to go public this year.


Oatly, a company best known for its oat milk, which can be used in coffee and cereals, raised $ 1.4 billion late Wednesday. About 84.4 million American depositary shares were sold at $ 17 each, the top of the company's $ 15 to $ 17 price range. deal's lead underwriters are Morgan Stanley, JP Morgan, and Credit Suisse.


Oatly, which bills itself as the "first oat drink company," makes vegan milk, yogurts, lattes, and spreadable cheeses from liquid oats. Its products can be found in over 50,000 outlets throughout 20 countries.


The business is operating at a loss. In 2020, losses increased to $ 60.4 million, up from $ 35.6 million in 2019. The company's revenue more than doubled, reaching roughly $ 421.4 million. According to Ingerson Capital Partners analysts, it had 792 employees in 2020.


Companies similar to Oatly have recently performed poorly as well. Beyond Meat's stock has lost 35% in the last three months, including a 24% loss in the previous month. Beyond Meat, which received $ 241 million in its IPO over two years ago, is Oatly's IPO raised $ 1.4 billion, giving it a market capitalization of $ 10 billion based on its $ 17 IPO price.


Recent initial public offerings (IPOs) have also underperformed. Squarespace (SQSP), a web hosting company, made its public debut on Wednesday, with shares closing at $ 43.31, or 13% less than the $ 50 reference price. Waterdrop (WDH), Talaris Therapeutics (TALS), and Vaccitech (VACC) are among the recent offers that have debuted below their offer prices.


Some well-known investors have backed Oatly. The startup secured $200 million in financing sponsored by Blackstone Group in July (BX). Winfrey, musician Jay-Z's organization Roc Nation, Natalie Portman, former Starbucks Chairman and CEO Howard Schultz, Orkila Capital, and Rabo Corporate Investments, Rabobank's investment arm, were among the participants in the round. After the IPO, Blackstone will own roughly 7% of Oatly.


Oatly isn't likely to be the last plant-based food company to launch. Impossible Foods is preparing to go public through an initial public offering (IPO) or a special purpose acquisition company (SPAC) merger. According to Ingerson Capital Partners experts, An IPO might value the plant-based burger company at $10 billion.