Sweden's Oatly, a pioneer in plant-based drinks, is eyeing a valuation that could exceed $10 billion in an upcoming initial public offering on Wall Street, the company said Tuesday.

The company, which produces oat-based alternatives to dairy products, such as milk, yoghurt and ice cream, said it had applied to be listed on the Nasdaq under the ticker symbol "OTLY".

Founded in the 1990s and now operating in about 20 countries, the Swedish company has taken off in recent years, boosted by the rise of vegan and vegetarian diets, as well as arguments for health and environmental benefits of alternatives to dairy.

In July 2020, Oatly announced that it had raised $200 million, with the participation of the Blackstone fund, US TV star Oprah Winfrey and actress Natalie Portman, valuing the company at around $2 billion.

Oatly on Tuesday set the terms for its IPO which would value the company at between $8.9 billion and $10.1 billion. There is no date yet for the IPO.

It would offer some 84 million American Depositary Shares at an estimated $15 to $17 (12 to 14 euros) each, with the option for underwriters of the deal to purchase an additional 12.66 million shares.

Back by US TV star Oprah Winfrey and actress Natalie Portman, Oatly has taken off in recent years, boosted by the rise of vegan and vegetarian diets, as well as arguments for health and environmental benefits of alternatives to dairy.
Back by US TV star Oprah Winfrey and actress Natalie Portman, Oatly has taken off in recent years, boosted by the rise of vegan and vegetarian diets, as well as arguments for health and environmental benefits of alternatives to dairy. AFP / Thomas URBAIN

The initial offering seeks to raise between $1.25 billion and $1.65 billion for the oat milk leader, based in Malmo in southern Sweden.

In 2020, Oatly saw a revenue of $421.4 million, up from $204.0 million the year before, according to a prospectus filed with US authorities.

However, at the same time the company reported a loss of $60.4 million "reflecting our continued investment in production, brand awareness, new markets and product development," the company said.

The number of employees also increased from 550 in 2019 to nearly 800 in 2020.

Although Oatly's sales are still relatively modest according to analysts, its oat milk is seen as a strong rival to other more established plant-based milks, such as soy or almond milk, by leveraging a cheap cereal.

Last year's Blackstone investment sparked controversy on social media, as critics highlighted links between the US firm and Brazilian infrastructure investments accused of contributing to rainforest deforestation and argued that Oatly was not living up to its image of sustainability.