Shares of Oatly soared 30 percent on Thursday as investors jumped at the chance to take part in rapid changes in the food industry driven by consumer tastes shifting to plant-based products.
The company, which makes an alternative to dairy milk based on oats, priced its initial public offering Wednesday night on the high end of its range, giving the company a value of about $10 billion. Shares were priced at $17 and began trading at $22.12 on the Nasdaq under the ticker “OTLY.”
The offering comes as money is flooding into the food tech space, with investors eager to catch a ride on the next Beyond Meat — the vegan food company valued at about $6.6 billion by public investors. And investors have put a heightened focus on companies like Oatly that say they meet environmental, social and governance standards.
“Long term, it’s an opportunity for us to create a fantastic shareholder base,” Oatly’s chief executive, Toni Petersson, said of the offering. “So E.S.G. was definitely a huge, huge part of it — so we’re excited, we’re really excited, about the outcome here.”
complained about Oatly’s marketing around its use of sugar. But Oatly has no plans to address its sugar content.
“We’re just replicating what nature does before it enters your stomach,” Mr. Petersson said in describing the process of making oatmilk.