Chobani is withdrawing its plans for an initial public offering, according to a regulatory filing on Friday.
The food and beverage company filed in November to go public on the Nasdaq Exchange using the ticker “CHO.” Reuters reported the yogurt maker was seeking a valuation of more than $10 billion.
But it’s been a rocky year for the stock market, leading to a drought of IPOs. In the second quarter, there were just 41 initial public offerings in the Americas, down 73% from the year-earlier period, according to a recent EY report. Chobani joins payroll vendor Justworks, grocer Fresh Market and file-sharing company WeTransfer in canceling 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 the future of Chobani,” the statement said.
In recent years, Chobani has expanded its product portfolio beyond Greek yogurt, adding oat milk, coffee creamers, cold brew coffee and yogurt drinks to its roster.
In its IPO filing, the company said its revenue grew 5.2% to $1.4 billion from 2019 to 2020. However, its net loss more than tripled during that time, reaching $58.7 million, as it invested back into its business. Chobani said it planned to use a portion of the proceeds from the IPO to pay down debt. The company also said it would reorganize its corporate structure as part of the process.
In March, amid delays to its IPO, Chobani’s then-operating chief Peter McGuinness left for Impossible Foods, where he now serves as chief executive. Neil Saunders, managing director of GlobalData, said in a statement that the departures of top leaders like McGuinness have cast a shadow over Chobani, despite its strong sales growth.
“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 said.
