Oatly (OTLY) - Get Oatly Report shares surged in their first-day of trading Thursday amid investor enthusiasm for the Swedish oat milk maker whose investors include Oprah Winfrey and private-equity giant Blackstone (BX) - Get Blackstone Inc. Report.
The stock recently traded at $21.14, up 24.32% from the initial public offering price of $17, but down from the opening of $22.12.
The IPO raised $1.43 billion in new capital and generated a valuation of $10 billion for the company, which also makes vegan food. It trades on the Nasdaq stock market.
Founded in 1994, Oatly claims to be the “world’s original and largest oat milk company.” Oatly has focused on using technology based on research from Sweden’s Lund University to turn fiber-rich oats into liquid food.
Also backed by Starbucks (SBUX) - Get Starbucks Corporation Report founder Howard Schultz, Oatly is an exclusive oat milk provider to Starbucks in the U.S. and China. Other investors include music mogul Jay-Z, Chinese conglomerate China Resources and Belgium-based private equity firm Verlinvest.
In its prospectus, Oatly reported a $60 million net loss on $421 million revenue for 2020, compared with a loss of $36 million on revenue of $204 million during the previous year.
In July, the company secured $200 million in new capital from investors, valuing the company at about $2 billion in the round
Oatly and its lead underwriters, which include Morgan Stanley, JPMorgan Chase and Credit Suisse, are hopeful Oatly’s IPO will be more successful than other recent public offerings due to its status as a consumer name rather than a technology company, according to reports.