Please ensure Javascript is enabled for purposes of website accessibility

Oat Milk Company Oatly to IPO -- Here's What Investors Need to Know

By Danny Vena - May 4, 2021 at 1:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The plant-based milk unicorn is preparing to go public.

The market for plant-based milk substitutes is booming, and Oatly wants a piece of the action. The company is a pioneer and the largest seller of oat-based milk in the world, and has filed an F-1 with the Securities and Exchange Commission in advance of its initial public offering (IPO). Oatly is planning to list its American depository shares (ADS) on the Nasdaq stock exchange using the ticker OTLY. 

Since this is an initial filing, Oatly hasn't yet divulged how much it hopes to raise, how many shares it will offer, or when shares will begin trading. The company is expected to debut in just weeks and could fetch a valuation in the neighborhood of $10 billion.

A barista pouring Oatly oat milk into a small, metal pitcher.

A barista using Oatly oat milk. Image source: Oatly.

Oatly has long been a fixture in its native Sweden and across Europe, but recently took the U.S. market by storm. The company announced a deal late last year that brought its vegan-friendly milk alternative to Dunkin Donut shops nationwide, and Starbucks (SBUX 3.76%) followed suit in early 2021. 

To close out 2020, Oatly products were available across 60,000 retail locations and 32,200 coffee shops in more than 20 countries around the world. The company has deals with major retailers including Walmart (WMT 0.86%), Target (TGT 0.81%), Amazon's (AMZN 3.15%) Whole Foods, and Kroger (KR 1.71%), and Oatly continues to expand internationally. To meet the growing demand, the company is rapidly increasing its production capability.

It offers a wide variety of products for those looking to avoid dairy, including milk, ice cream, yogurt, spreads, and on-the-go drinks. Oatly has ridden the wave of growing consumer health consciousness and diet awareness, as well as the generational shift toward sustainability and environmentally friendly alternatives.

For the year ended Dec. 30, 2020, the company generated revenue of $421.4 million, which surged 106% from $204 million in 2019. Losses also climbed, to $60.4 million, worsening from a loss of roughly $35.6 million the year before.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Starbucks Corporation Stock Quote
Starbucks Corporation
$79.26 (3.76%) $2.87, Inc. Stock Quote, Inc.
$109.56 (3.15%) $3.35
Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
$122.63 (0.86%) $1.05
Target Corporation Stock Quote
Target Corporation
$142.38 (0.81%) $1.15
The Kroger Co. Stock Quote
The Kroger Co.
$48.14 (1.71%) $0.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.