Packages of Chobani yogurt sit on the shelf at a grocery retailer July 7, 2021 in Washington, DC.
Drew Angerer | Getty Photographs
Chobani is withdrawing its plans for an preliminary public providing, in line with a regulatory filing on Friday.
The meals and beverage firm filed in November to go public on the Nasdaq Change utilizing the ticker “CHO.” Reuters reported the yogurt maker was looking for a valuation of greater than $10 billion.
But it surely’s been a rocky yr for the inventory market, resulting in a drought of IPOs. Within the second quarter, there have been simply 41 preliminary public choices within the Americas, down 73% from the year-earlier interval, in line with a latest EY report. Chobani joins payroll vendor Justworks, grocer Contemporary Market and file-sharing firm WeTransfer in canceling its IPO this yr.
In an emailed assertion, Chobani cited present market circumstances for the withdrawal.
“Our focus stays on robust execution and driving worthwhile progress, and we proceed to be enthusiastic about the way forward for Chobani,” the assertion mentioned.
In recent times, Chobani has expanded its product portfolio past Greek yogurt, including oat milk, espresso creamers, chilly brew espresso and yogurt drinks to its roster.
In its IPO submitting, the corporate mentioned its income grew 5.2% to $1.4 billion from 2019 to 2020. Nevertheless, its internet loss greater than tripled throughout that point, reaching $58.7 million, because it invested again into its enterprise. Chobani mentioned it deliberate to make use of a portion of the proceeds from the IPO to pay down debt. The corporate additionally mentioned it might reorganize its company construction as a part of the method.
In March, amid delays to its IPO, Chobani’s then-operating chief Peter McGuinness left for Inconceivable Meals, the place he now serves as chief govt. Neil Saunders, managing director of GlobalData, mentioned in an announcement that the departures of prime leaders like McGuinness have solid a shadow over Chobani, regardless of its robust gross sales progress.
“This has given the impression of great disagreements on the prime which isn’t precisely the message a enterprise seeking to go public needs to impart,” he mentioned.