Swedish oat-milk maker Oatly Group AB’s initial public offering priced at $17 a share, at the high end of expectations, a positive sign for the company amid volatile stock-market trading.
Oatly’s IPO raised $1.43 billion, and the $17 price tag—first reported by The Wall Street Journal—gave the celebrity-backed company a valuation of roughly $10 billion. Oatly had set its sights on raising between $1.27 billion and $1.43 billion by selling roughly 84.4 million American Depositary Shares at a price of $15 to $17 apiece, according to a regulatory filing. The proceeds will go to the company and selling shareholders.
Oatly’s stock will begin trading on the Nasdaq Stock Market on Thursday under the symbol OTLY.
Pricing at the high end of the range is an encouraging sign for Oatly, especially because going public has proved tough for several companies recently. The stock market has taken a turn lower on fears of inflation, and investors have increasingly shied away from the types of growth companies that typically go public. The Nasdaq Composite Index, chock-full of growth companies, has fallen 4.8% so far in May.
Last week, at least three companies postponed their IPOs because of volatility in the stock market. On Wednesday, website-development company Squarespace Inc.’s shares made their debut on the New York Stock Exchange at a level far below their last financing round, then proceeded to fall further through the afternoon.