Packages of Chobani yogurt sit on the shelf at a grocery retailer July 7, 2021 in Washington, DC.
Drew Angerer | Getty Images
Chobani is withdrawing its plans for an preliminary public providing, in response to a regulatory submitting on Friday.
The meals and beverage firm filed in November to go public on the Nasdaq Exchange utilizing the ticker “CHO.” Reuters reported the yogurt maker was in search of a valuation of greater than $10 billion.
But it has been a rocky yr for the inventory market, resulting in a drought of IPOs. In the second quarter, there have been simply 41 preliminary public choices within the Americas, down 73% from the year-earlier interval, in response to a current EY report. Chobani joins payroll vendor Justworks, grocer Fresh 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 remains on strong execution and driving profitable growth, and we continue to be excited about the future of Chobani,” the assertion mentioned.
In current years, 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.four billion from 2019 to 2020. However, 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 firm additionally mentioned it could 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 Impossible Foods, the place he now serves as chief government. Neil Saunders, managing director of GlobalData, mentioned in a press release that the departures of high leaders like McGuinness have forged a shadow over Chobani, regardless of its sturdy gross sales development.
“This has given the impression of serious disagreements at the top which is not exactly the message a business looking to go public wants to impart,” he mentioned.
