Chobani withdraws IPO plan after yogurt maker files to go public in November

Packs of Chobani yogurt sit on a shelf at a grocery store on July 7, 2021 in Washington, DC.

Drew Angerer | beautiful pictures

Chobani is withdrawing its plan to issue shares to the public for the first time, according to a regulatory record on Friday.

Food and Beverage Company applied for listing on Nasdaq exchange use the code “FOR” in November. Reuters reported that it is seeking a valuation of more than $10 billion.

But it’s been a rough year for the stock market, leading to a drought of IPOs. In the second quarter, there were only 41 initial public offerings in the Americas, down 73% year-over-year, according to a recent EY report. Chobani join payroll company Justworks, grocery store Fresh Market and file sharing company WeTransfer canceled its IPO this year.

In an emailed statement, Chobani cited current market conditions for the withdrawal.

“Our focus remains on strong execution and driving profitable growth, and we continue to be excited about Chobani’s future,” the statement said.

In recent years, Chobani has expanded its product portfolio beyond Greek yogurt, add oat milk, coffee creamers, cold brew coffee and yogurt drinks to its list.

In public filings, the company said its revenue grew 5.2% to $1.4 billion between 2019 and 2020. However, its net loss more than tripled during the period. that period, reaching $58.7 million as it reinvested in its business. Chobani said it plans to use part of the proceeds from the IPO to pay off debt. The company also said it would reorganize its corporate structure as part of the process.

In March, amid the IPO delay, Chobani’CEO then Peter McGuinness has left for Impossible Foods, where he is currently chief executive officer. Neil Saunders, chief executive of GlobalData, said in a statement that the departures of top leaders like McGuinness cast a shadow over Chobani, despite strong sales growth.

“This gives the impression of serious disagreements above, which is not the exact message a business that wants to go public wants to convey,” he said.

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