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How to trade on Oatly’s IPO

Oatly is a Swedish food brand that produces dairy alternative products, made primarily from oats. The company was founded in the early 1990s and has grown to become a leader in the vegan and plant-based markets in Europe. Oatly had its initial public offering (IPO) in May 2021, meaning that the company’s shares are now available to trade publicly. Continue reading to find out how to get involved with Oatly’s IPO and how to trade on newly listed Oatly shares.

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When is Oatly’s IPO date?

Oatly's IPO took place on 19 May 2021, where the company debuted on the NASDAQ stock exchange under the ticker ‘OTLY’.

Why trade Oatly’s IPO with CMC Markets?

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Oatly’s share price and financials

Oatly priced its shares ahead of the IPO at $17, where the company was expected to earn a valuation of around $10bn. This is 5x its previous valuation of $2bn in July 2020. Upon debut on the NASDAQ, Oatly's share price opened almost 30% higher than expected at a price of $22. This gave the company an even higher valuation of around $13bn.

Trade on Oatly's share price >​​

In terms of pre-IPO financials, Oatly shows large progress in its industry. The brand’s popularity has led to supply shortages in the US due to delays in production. At the end of 2020, Oatly reported a $60m net loss on an overall $421m revenue, which doubles the revenue from the previous year. In the company’s prospectus for its IPO, Oatly is also expanding its presence outside of Europe and the US, and it is considering a secondary listing on the Hong Kong Stock Exchange.

How to trade on Oatly’s IPO

  1. Register for an account. We offer over 9,000 shares and ETFs on our platform, which will include Oatly’s new listing.
  2. Choose whether to spread bet or trade CFDs. Spread betting is our most popular product and it is tax-free in the UK**, whereas share CFDs do not require you to pay stamp duty and are available globally.
  3. Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.
  4. Follow market news. Oatly is a trending company and there are many aspects of the IPO to consider, including its stakeholders, business stance and EU regulations.
  5. Consider risk-management tools. Share prices can rise and drop suddenly on their stock market debut, so it may be worth adding stop-loss or take-profit orders to any open positions in order to prevent capital loss.

Why may investors be interested in Oatly’s upcoming IPO?

Oatly has seen success over recent years, due to a re-branding in 2013 and investor interest from high-profile celebrities, such as Oprah Winfrey and Jay-Z. Here are some reasons why investors may be particularly interested in trading on Oatly’s IPO:

  • Oatly caters for a wide range of consumers, including those who are vegan, lactose intolerant or simply want to improve their sustainability and carbon footprint. Learn more about vegan investments.
  • The global market for milk alternatives reached approximately $18bn in 2019 and has been steadily growing, suggesting that it may reach much higher figures in the future.
  • The company has started partnerships with large brands, particularly in the US, such as Starbucks in March 2021, which agreed to trial Oatly products. After receiving positive feedback, the brand has now joined Starbucks’ menu of milk alternatives.
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Risks and controversies

In 2020, Oatly faced backlash after selling a 10% stake of the company, worth $200m, to US-based investment management company, The Blackstone Group. Blackstone is known for its ties and financing of companies that promote deforestation of the Amazon, which goes against Oatly’s sustainable and eco-friendly business stance. This led to some consumers boycotting the company and switching to other plant-based milk brands. There is also the issue of recent EU regulations on plant-based foods, whether it be relating to branding or wording.

This is all important information when considering whether to trade on Oatly’s IPO. Consumer backlash can lead to negative investor sentiment, which can have an effect on the company’s share price. Traders should stay up to date with market news and announcements, in case there are updates that may cause their positions to decline in value. Find out more in our news and analysis section of the platform.

Who is Oatly’s competition?

Oatly is not the first or the only dairy alternative brand. Other companies include Alpro, Almond Breeze, Kite Hill, Dream and Swedish Glace. However, the majority of these are subsidiary brands that are owned by larger corporations, such as Danone, Unilever and Hain Celestial Group, which are largely involved in the production of dairy for the remainder of their products. Therefore, Oatly’s IPO is fairly unique to its market, given that it’s a pure play milk alternative.

Trade on Oatly stock with us

Register for an account to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on Oatly’s share price. IPOs don’t usually go live at the start of the trading session as the exchange needs to undertake a price discovery phase to calculate the opening price. Therefore, look out for Oatly’s IPO going live a couple of hours into the UK trading session on the day.

FAQ

How can I buy stock in Oatly?

It is possible to buy stock directly through share dealing, where you will take ownership of the shares. Alternatively, with CMC Markets, you can speculate on the price movements of Oatly stock, which allows you to trade on both sides of the market. Learn more about this type of derivative trading.

Is Oatly profitable?

Oatly has shown signs of growth and profit within recent years, and the dairy-alternative market is said to be worth over $18bn. However, success of the market nor individual stock isn’t guaranteed, so you should still take adequate risk-management controls when trading on Oatly shares.

How much is Oatly worth?

Oatly is currently worth around $2bn, according to a valuation carried out in July 2020. This is due to investments from various external organisations, such as The Blackstone Group. However, this is predicted to increase to $10bn upon debut on the stock market. Learn more about analysing company fundamentals.

Can I get notifications for Oatly’s IPO?

You can enable notifications for trading alerts on your desktop or mobile device, which includes breaking news and announcements for Oatly’s IPO. You can then set up price alerts once Oatly is listed on the platform, so find out how to set up trading alerts now.

What are the trading hours for Oatly stock?

Oatly’s trading hours will reflect the stock exchange that it is listed on, the NASDAQ. This is currently between 14:30 and 21:00 GMT. Discover more UK stock market hours.

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