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Finance

Yogurt Company Chobani Considers IPO Date in Second Half of 2021

Yogurt company Chobani LLC might be going public through an IPO in the second half of 2021. What can investors expect from the possible IPO?

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The company based in Norwich, N.Y., is working with Goldman Sachs Group Inc. and Bank of America Corp. on a possible IPO, Bloomberg reported June 14. 

Since nothing is set in stone yet, the actual Chobani IPO date could change. 

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Source: chobani Facebook

The Wall Street Journal first reported back in February that Chobani officials were entertaining the IPO idea. The company was seeking a valuation between $7 billion and $10 million, The Wall Street Journal reported. 

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“As we create the food company of the future, we’ll look at all options carefully to fuel our ambitious plans, especially with oat milk and plant-based products,” Chobani founder Hamdi Ulukaya said in a statement to The Wall Street Journal. “An IPO is definitely one exciting direction, but whether or not we’re public, we’ll keep disrupting and making things better.”

What is Chobani?

Ulukaya founded Chobani in 2005 with the mission to make “better food for more people.” Its higher protein Greek yogurt was one of the first on the market and became the country’s top-selling Greek yogurt. 

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Chobani introduces new zero sugar yogurt.

On June 14, Chobani announced its latest product, Chobani Zero Sugar. The new yogurt has had all sugars that occur in milk removed through fermentation, which creates a sugar-free, lactose-free yogurt with just 60 calories.

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“Chobani® Zero Sugar* is a revolutionary innovation,” said Peter McGuinness, the president and COO of Chobani, in a company press release. “Our team developed a brand new product that is as delicious as it is healthy. You won’t find another product on shelves nationwide in the U.S. dairy aisle with 11 grams of protein and only natural ingredients, but no sugar or artificial sweeteners.”

Chobani has seen sales increase.

The food maker has seen growth over the years. Chobani’s yogurt sales grew 12 percent in 2020, and the company has an annual revenue of about $2 billion, The Wall Street Journal reported. The proceeds from an IPO could help the company in its efforts to produce new products. 

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Who owns Chobani?

Ulukaya still owns a majority stake in Chobani. Private investment firm Hoopp Capital Partners, an arm of the Healthcare of Ontario Pension Plan, purchased a minority stake in the company in 2018. 

chobani ipo plans

Source: Chobani Facebook

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In 2016, Ulukaya pledged to give 2,000 full-time Chobani employees up to 10 percent stake in the company when it goes public or is sold, The Wall Street Journal reported. 

Chobani rival Oatly raised over $1 billion in its IPO.

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Oatly shares started trading at $17, which was the higher end of its expected pricing range. The company raised $1.43 billion at its IPO and is valued at almost $10 billion. 

On June 15, Oatly shares were trading at about $27.42 per share. 

View more information: https://marketrealist.com/p/chobani-ipo-date/

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