The maker of yogurt, Chobani (Nasdaq:CHO), sought on Friday to cancel its initial public offering (IPO), which it had originally registered for in November of last year but had postponed further due to weak market conditions.
Chobani disclosed in its November IPO filing that the company had a net loss of $24 million and $1.2 billion in revenue for the nine months that ended in September of 2021. With a target valuation of $7 billion to $10 billion and the projected ticker symbol CHO, the company had originally intended to go public late last year.
With the difficult market climate and the departure of key top executives, Chobani decided to delay the IPO plans until the second half of this year. In a regulatory filing, Chobani stated that the company had made the decision not to proceed with the planned initial public offering at this time and that no securities had been issued. The yogurt manufacturer did not go into greater information regarding the reasons for the cancellation of the IPO.
Chobani initially made a filing in November to conduct an IPO. When the announcement was made, the company indicated it would raise $100 million, but this was probably only an estimate that was open to change. According to the filing, for the nine months ending September 25, 2021, the company reported a net loss of $24 million on revenue of $1.2 billion.
The businesss choice was made at a time when consumers are choosing traditional dairy and meat over plant-based alternatives, such as those produced by Oatly Group AB (OTLY.O) and Beyond Meat Inc (BYND.O), which have failed to generate sales.
In light of decades-high inflation, Campbell Soup Co (CPB.N) reported on Thursday that elderly consumers are increasingly choosing less expensive store-brand alternatives over its soups and broths.
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Author: Jowi Kwasu
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