OTLY: Oatly Releases IPO Terms & Sets Sights On US$10.1 Billion Valuation

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Oatly has set its terms for its IPO on the Nasdaq stock exchange, aiming for a valuation of around US$10.1 billion with the offering price expected to be between US$15 to US$17 per share. The Swedish oat milk maker first made official its intentions to go public in the U.S. in February when it filed with regulators. 

Oatly, known formally as Oatly AB, has released its IPO terms, which could value the company at more than US$10 billion. Expected to list on the Nasdaq under the ticker symbol OTLY, the initial price of each share is estimated to be between US$15 to US$17. The firm said on Tuesday (May 11) that it is offering 64.7 million shares to raise as much as US$$1.10 billion in its IPO, while selling shareholders are offering an additional 19.7 million shares to raise up to US$334.7 million. 

In the term sheet sent to investment banks, the company described itself as “the world’s original and largest oatmilk company with over 25 years of experience of exclusively focusing on development expertise around oats”.

With more than 592 million ordinary shares outstanding after the IPO, the oat milk maker could see its valuation rise to as much as US$10.07 billion. Morgan Stanley, J.P. Morgan and Credit Suisse are the lead book-running managers. 

Oatly also said that around US$188 million of the proceeds from the IPO will be used to repay a sustainability-linked loan agreement with a number of European banks, while a smaller portion will fund its bridge financing, while the rest goes to fuel its continued growth.  

According to a report in Yahoo Finance, Scottish asset management company Baillie Gifford has indicated interest in purchasing as much as US$500 million of the shares. 

The Blackstone-backed company made official its intentions to pursue an IPO earlier in February this year, submitting its plans to regulators but releasing few details on the terms of the planned sale at the time. Sources close to the firm, however, did say that Oatly would likely seek a valuation of around US$10 billion – a figure that fellow food tech giant Impossible Foods is also reportedly aiming for as it mulls its own IPO. 

In the prospectus Oatly filed later in April, the company also revealed that it could be seeking a Hong Kong public listing after its U.S. IPO, in the case of any “material adverse effect” on its relationship with state-owned Chinese conglomerate China Resources. 

While Oatly’s most established markets are in Europe and the U.S., it has been ramping up its presence across Asia-Pacific in recent years. Sales in the region quadrupled to US$54 million last year, and the firm has recently forged a partnership with Singapore beverage giant Yeo’s, marking the first time Oatly’s products have been manufactured in Asia to supply China and neighbouring countries. 

Oatly is currently sold in more than 20 countries and landed in Singapore for the first time in late 2020, after coffee giant Starbucks rolled out a number of beverages with the brand’s oat milk in eight key Asian markets as well as in mainland China

Want to know more about Oatly? APAC investor Michal Klar breaks down Oatly’s IPO prospectus here

Lead image courtesy of Oatly.


  • Sally Ho

    Sally Ho is Green Queen's former resident writer and lead reporter. Passionate about the environment, social issues and health, she is always looking into the latest climate stories in Hong Kong and beyond. A long-time vegan, she also hopes to promote healthy and plant-based lifestyle choices in Asia. Sally has a background in Politics and International Relations from her studies at the London School of Economics and Political Science.

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