Blackstone Group Inc BX- and Oprah Winfrey-backed Swedish vegan food and drinks maker Oatly Group AB on Monday filed for an initial public offering in the United States and said may consider adding a listing in Hong Kong over the next two years.
What Happened: Oatly in a filing with the SEC said it plans to raise $100 million by selling American Depositary Shares, a placeholder figure that is often used to calculate filing fees and is likely to change. The company is seeking to list on the NASDAQ with the symbol "OTLY."
The prospectus said Oatly could pursue a Hong Kong listing if it generated more than 25% of its revenue from sales in the Asia-Pacific region for two consecutive fiscal quarters.
China Resources owns more than 60% of the Swedish company through a joint venture with the Belgian family investment group Verlinvest. The company has ramped up its presence in China in recent years.
The company reported a loss of $60.4 million on a revenue of $421.4 million in 2020, compared with a loss of $35.6 million on a revenue of $204 million the previous year. EMEA emerged as the biggest revenue contributor at 64%, followed by the Americas at 24% and China at 13%.
Nearly four years into its foray in the United States, Oatly products are sold in about 7,500 retail stores and 10,000 coffee shops in the country and churned a $100 million revenue in 2020.
See also: How to Buy Oatly IPO Stock
In July, lead investor Blackstone helped secure $200 million for Oatly during a private equity funding round. This was a huge step up from a venture funding round held on Oct. 31, 2019, which saw Oatly raise $41.4 million.
Why It Matters: Demand for plant-based food has boomed in recent times led by millennials and the younger customers who are willing to pay more and switch to healthier alternatives. Oatly has struck a partnership with Starbucks Corporation SBUX and is eyeing to capture a portion of the global dairy market currently estimated to be worth $600 billion.
Due to a boom in demand, Oatly has been facing supply issues and has been ramping up production capacity. In 2019, it opened a production facility in the US and one in the Netherlands. Last month, the company opened another production facility in the U.S. and it has three under-construction facilities in Singapore, China, and the United Kingdom.
Price Action: Shares of Blackstone closed 0.04% higher at $79.3 on Monday and those of Starbucks closed 0.63% lower at $117.60.
Photo by Tiia Monto on Wikimedia
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