Chobani's IPO Plans Are Official—IPO Date and Price, Explained
Yogurt company Chobani has made its IPO plans official. What do we know now that there's a confidential filing in place?
July 8 2021, Published 11:59 a.m. ET
Following reports that Chobani was headed toward an IPO, the New York-based yogurt company has made its plans official with the SEC. It filed a confidential registration statement with the commission that lays out its goal to go public.
Now that things are moving in the right direction for Chobani, investors want to know about the IPO date and price.
Chobani filed its registration statement confidentially.
Some companies decide to keep their registration statement (which includes details on the company's financial health and associated risks) confidential until they near the IPO date, which is exactly what Chobani decided to do.
Now that the reports initially made by The Wall Street Journal have been solidified, investors are showing interest in the potentially high-value company.
How much is Chobani worth?
Chobani is estimated to be worth $7 billion–$10 billion at the corporate level. The dairy IPO will come after oat milk company Oatly (NASDAQ:OTLY) went public at an initial valuation of about $13 billion.
Since Oatly's debut in May, OTLY shares have increased more than 9 percent overall. Chobani stock could see the same fate or the shares could drop (even whipsaw) at the open. While not quite a battle between good and evil, there will surely be a point of contention between the pro-dairy and plant-based niches in the commodities sector.
Other food and beverage competitors Dole and Zevia are set to hit the market soon too.
The yogurt company adds "fair trade" to its resume.
Chobani is poised to hit a high ESG score thanks to its recent fair trade delegation. Goods certified by Fair Trade USA must meet certain standards for social and environmental impact within and across borders. Chobani's 32-ounce yogurt containers will represent the first fair trade certified dairy product in the U.S. The fair trade dairy criteria is new and Chobani was able to meet the requirements off the bat.
Vaccines and immigration: Chobani hasn't been quiet
Chobani's billionaire founder Hamdi Ulukaya is outspoken on immigration and human rights. Ulukaya's father was a nomadic sheep farmer from the Erzincan region of Turkey, which is adjacent to the Euphrates River and surrounded by snowy mountains. Ulukaya himself moved to the U.S. in 1994. He took over an abandoned yogurt factory in 2005 and launched Chobani a few years later. About a third of Chobani employees are immigrants or refugees.
Also, Chobani provided employees with vaccines in the Twin Falls, Idaho factory. As a company, Chobani isn't afraid to be outspoken about what it thinks is right.
Chobani's IPO date and price are still under lock and key.
Chobani's confidential filing means that details like the IPO date and share price are still under wraps.
Whatever the details, Chobani plans to continue expanding beyond Greek yogurt. While that category is how the company got its start, it's looking to accelerate innovation in other areas (like coffee and plant-based choices).
No IPO is without risk, and Chobani will definitely have its own. Going from a privately managed company to one up for public analysis isn't an easy feat. Chobani will have to balance its social and environmental morals with shareholder requests. Profit and progress aren't always in sync, and that's a fine line that the yogurt company will have to balance as it moves toward the IPO date.