Please ensure Javascript is enabled for purposes of website accessibility

Oatly's IPO Could Fetch a $10 Billion Valuation This Week. Here's What Investors Need to Know

By Danny Vena - May 19, 2021 at 3:35PM

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 could be the next blockbuster IPO.

Plant-based milk substitutes are all the rage right now and Oatly is leading the charge. The company is a pioneer in the field and the largest seller of oat-based milk in the world. Oatly is also a favorite milk substitute among Starbucks customers, which is at least partially responsible for its popularity. 

Oatly has scheduled its initial public offering (IPO) for later this week and will list its American depositary shares (ADS) on the Nasdaq Stock Market using the ticker "OTLY." The stock has been priced in a range of $15 to $17 per share, with each ADS representing one ordinary share. The company will offer 64.89 million shares and raise as much as $1.1 billion from the offering, valuing Oatly at as much as $10 billion. 

Oats scattered on a table in front of a glass and a pitcher of oat milk.

Image source: Getty Images.

The company was already a big hit in its native Sweden before taking the U.S. market by storm. By joining forces with Starbucks and Dunkin' coffee shops to provide its plant-based milk substitute, Oatly quickly garnered significant name recognition. It offers a wide variety of alternative products for those looking to avoid dairy, including milks, ice creams, yogurts, and spreads.

Oatly has a large and growing customer base, selling in 60,000 retail locations and 32,200 coffee shops across more than 20 countries. The company offers its products at a host of major retailers including Walmart, Target, Amazon's Whole Foods, and Kroger, and continues its aggressive international expansion

For the year ended Dec. 31, 2020, Oatly generated revenue of $421.4 million, which surged 106% from $204 million in 2019. The company's losses also climbed, with a loss of $60.4 million, worsening from a loss of $35.6 million the year before. That trend continued in the first quarter, with revenue of $140 million, up 66% year over year, and a loss of $32.4 million that nearly quadrupled. 

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Danny Vena owns shares of Amazon and Starbucks. The Motley Fool owns shares of and recommends Amazon and Starbucks. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, short January 2022 $1,940 calls on Amazon, and short July 2021 $110 calls on Starbucks. The Motley Fool has a disclosure policy.

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

Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
$139.07 (-0.32%) $0.45
Target Corporation Stock Quote
Target Corporation
$173.05 (-1.31%) $-2.29
Starbucks Corporation Stock Quote
Starbucks Corporation
$88.55 (0.23%) $0.20, Inc. Stock Quote, Inc.
$142.30 (0.14%) $0.20
The Kroger Co. Stock Quote
The Kroger Co.
$49.62 (2.20%) $1.07

*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 08/18/2022.

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.