Swedish oat milk brand Oatly is headed for a New York IPO that will test investor demand for companies that make plant-based foods.
The company, which will list on the Nasdaq on Thursday, priced its shares at $17 each, giving it a valuation of $10 billion and raising over $1.4 billion from the sale of new and existing equity.
Oatly, which produces a milk substitute made from oats, has grown rapidly in recent years. Its signature product is now sold in 60,000 retailers and over 32,000 coffee shops across more than 20 countries.
The company’s success exemplifies the growing demand for plant-based foods, driven by health-conscious Millennial and Generation Z consumers who are also concerned about the impact that animal-based products have on the environment.
The trend has boosted newcomers such as Impossible Foods and Beyond Meat (BYND), which soared in its stock market debut in 2019, while also also prompting established food companies, such as Nestlé (NSRGY) and Target (CBDY) to launch plant-based ranges.