Oatly eyes the Hong Kong listing as the US IPO approaches

Oatly recently announced plans for new facilities in the UK, Singore

Oatly has announced that it will file for a listing in Hong Kong after the Swedish dairy-free company registered its proposed IPO on the Nasdaq Global Select Market Exchange with the US Securities and Exchange Commission this week.

Oatly’s parent company, Havre Global, announced in February that the listing would include American depository shares convertible into common stock, although the company has not disclosed the intended amount.

The Malmö-based Oatly prospectus, filed with the SEC on June 19, also did not reveal the number of ADRs or the size of the offering. However, this is UK based Financial Times newsper has suggested the IPO is $ 10 billion, more than the $ 1 billion raised by the CNBC News channel earlier this year.

„On February 9, 2021, we reached an agreement with our shareholders to apply for an additional listing of our common shares or ADS on the Hong Kong Stock Exchange under certain conditions,” the prospectus reads.

Oatly said it would seek a Hong Kong listing in the event of a „material adverse effect” from its relationship with a Chinese state-owned company.

Back in 2016, the Belgium-based private equity company Verlinvest and the state conglomerate China Resources acquired an undisclosed stake in Oatly through a new joint venture focusing on health and consumer goods.

Oatly stated: „Pursuant to the terms of the Supplementary Listing Agreement, in the event that (i) this Offer or our US publicly traded status has or has material adverse effects to our shareholders or their affiliates who own a or are otherwise associated with (or perceived to be) a foreign state, government or political party as long as such material adverse effects persist or (ii) to generate from time to time after the second anniversary of the completion of this Offering We have more than 25% of our revenue with sales in the Asia Pacific region for each of the two consecutive fiscal quarters. Upon request from China Resources or its affiliates that hold or economically own our common stock, we will promptly add an additional listing on the Hong Kong Stock Exchange bea wear. „

The company found that the Nativus Company, its largest shareholder, is a wholly owned subsidiary of China Resources Verlinvest Health Investment, the equally divided company between Verlinvest and Blossom Key Holdings Limited.

It continued, „CR Holdings is the sole shareholder of Blossom Key Holdings Limited, and CR Holdings is indirectly and wholly owned by China Resources Company Limited. The State Assets Supervision and Management Commission of the State Council and the National Council for social affairs The Security Fund of the People’s Republic of China fulfills the duty of the investor (90.0222% or 9.9778%) of the China Resources Company Limited on behalf of the State Council. „

Last summer, the oat milk business sold a minority stake in a $ 200 million financing round led by US-based private equity firm Blackstone Group. Contributors included Jay-Z’s entertainment company Roc Nation, celebrities Oprah Winfrey and Natalie Portman, former Starbucks chairman and CEO Howard Schultz, and Rabo Corporate Investments, Rabobank’s investment arm.

For its fiscal year ended December 31, Oatly had sales of $ 421.4 million, an increase of more than 100% over the previous 12 months, but reported a loss of $ 60.4 million due to investments in the prospectus Production and new markets. It produces herbal drinks, yogurt, ice cream, and spreads.

The company serves European markets in more than 20 countries, including the UK, as well as the USA, Asia and Australia. Oatly recently announced the construction of Debut manufacturing facilities in Singore and the UK to expand locations in Sweden, the Netherlands and the US.