What’s going on?

• Sweden-based Oatly – the maker of vegan food and drink products – has submitted plans for an IPO with possible valuation of more than $5 billion
• Morgan Stanley, JPMorgan and Credit Suisse have been hired as underwriters on the offering.

What does that mean?

• Oatly has been distributing through partnerships with cafes in the US (E.g: Starbucks), online, and in retail stores.
• In Jul 2020, Oatly raised a $200 million in equity from a group led by Blackstone that includes Oprah Winfrey, Natalie Portman, former Starbucks chief Howard Schultz, Jay-Z’s entertainment company Roc Nation, Orkila Capital, and Rabobank’s Rabo Corporate Investments. By then, Oatly was only valued at about $2 billion.

Why should I care?

For markets: Things are still under the review process

• JPMorgan and Credit Suisse had no immediate comment, while Morgan Stanley declined to respond.

The bigger picture: Vegan stocks

• The plant-based food sector has gained investor attention over the past few years, especially as fast-food chains and upscale restaurants create new menus to attract health- and environment-conscious diners. E.g: the hype with the IPO of Beyond Meat in 2019

Content source: Finimize (2021) Plant-based milk company Oatly confidentially files for IPO. CNBC. Available at: https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2021/02/23/plant-based-milk-company-oatly-confidentially-files-for-ipo.html [Accessed on February 25, 2021]