(Bloomberg) -- Oatly AB, the maker of vegan food and drink products, is considering seeking a value of around $10 billion in a U.S. listing, according to people familiar with the matter.
Malmo, Sweden-based Oatly is working with advisers on an initial public offering that could come as soon as May, the people said, asking not to be identified discussing confidential information. Deliberations are ongoing and details on size and timing of the listing could still change, the people said.
While Oatly had also considered listing in Hong Kong, it has decided to press ahead with only a U.S. share sale for now, the people said. A representative for Oatly declined to comment.
Oatly was founded in the 1990s by brothers Rickard and Bjorn Oste. Using technology based on research from Sweden’s Lund University, the company turns fiber-rich oats into liquid food. Under Chief Executive Officer Toni Petersson, Oatly has undergone a brand transformation in recent years and has embarked on sometimes divisive advertising campaigns taking aim at the dairy industry.
Its products continue to attract a following among latte drinkers from New York to Shanghai, thanks to frothing qualities that emulate dairy milk. The company also has a deal with Starbucks Corp., which has placed Oatly lattes on its menus in China. This has all helped attract investors. Last year, Oatly secured $200 million in funding from backers including Blackstone Group Inc. and celebrity entrepreneurs Oprah Winfrey and Jay-Z.
Oatly’s popularity highlights plant-based products’ jump into the mainstream, as environmental and health concerns spur consumers to seek alternatives to traditional meat and dairy products. Shares in Beyond Meat Inc. have surged more than 500% since the maker of plant-based burger patties went public in May 2019.
A U.S. listing this year could pit Oatly against Chobani LLC. The U.S. maker of Greek yogurt, oat milk and other products is also weighing an IPO, a person familiar with the matter previously said.
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