Oatly, the Blackstone-backed vegan dairy company that would operate on Nasdaq on Monday, said it would consider adding a listing in Hong Kong within the next two years, citing its relationship with a Chinese state-owned conglomerate.
China Resources owns more than 60 percent of the Swedish group through a joint venture with Belgian family investment group Verlinvest and has helped the company expand its presence dramatically over the past few years.
In a prospectus for its Nasdaq share offering, Oatly said it could seek a second listing in Hong Kong if its status as a US public company had a “material adverse effect” on its leading shareholders.
Oatly explained why he agreed with the provision, mentioning the possibility that the US government could make it difficult for the group to share information with a state-owned enterprise and that China Resources could prevent its representatives from being on the Oatly board. instead, or even to force. to sell.
The company also said it could continue a listing in Hong Kong if it generates more than 25 percent of its revenue from sales in the Asia-Pacific region in two consecutive fiscal quarters.
The prospectus outlines how Oatly was able to expand its presence outside Europe rapidly, with Asia and the United States contributing a total of $ 150 million last year, or 36 percent of total revenue, compared to $ 50 million, or 24 percent, in 2019.
Oatly’s products are now sold at more than 9,500 stores in China, three years after they were launched in the country. In the US, Oatly products can be found at 7,500 retailers and in more than 10,000 coffee shops.
The relationship with China Resources provoked controversy when the group invested in Oatly with Verlinvest in 2016, prompting the Swedish media to highlight China’s environmental and human rights record.
“It’s hard to have a big float without Chinese investors getting involved these days,” said a small venture capitalist of Oatly.
Oatly, based in Malmö, has increased due to the popularity of vegetable milk alternatives around the world and insists on a valuation of $ 10 billion from the Nasdaq float, according to people familiar with its plans.
An investment round last year led by Blackstone valued the oatmeal manufacturer at $ 2 billion. Oatly’s other investors include television presenter Oprah Winfrey and rapper Jay-Z’s Roc Nation.
The prospectus confirms the earlier estimate of revenue of more than $ 400 million in 2020 – $ 421 million to be exact, compared to $ 204 million in 2019 – although losses increased from $ 35.6 million to $ 60.4 million.
International expansion has focused on the specialty coffee market, with its “barista” milk frothing like cow’s milk. Oatly also expanded to the production and sale of vegetable ice cream and yogurt, although oat milk accounted for 90 percent of revenue last year.
The company said it plans to raise $ 100 million in the initial public offering, a number of the placeholder that is likely to change. Morgan Stanley, JPMorgan and Credit Suisse lead the offer.