Oatly Group $1.4 billion IPO

Davis Polk advised China Resources (Holdings) Company Limited, a significant investor in Oatly Group AB, in connection with the $1.4 billion initial public offering of 84,376,000 American depositary shares of Oatly Group, each representing one ordinary share. Oatly Group has granted the underwriters an option to purchase up to an additional 12,656,400 ADSs. The ADSs are listed on the Nasdaq Global Select Market under the symbol “OTLY”.

Headquartered in Sweden, Oatly Group is the world’s original and largest oatmilk company. China Resources Holdings is a diversified and industry-oriented holding company registered in Hong Kong, which holds investments in a variety of business areas such as consumer products, healthcare, energy services, urban construction and operation, technology and finance. Oatly Group’s largest shareholder, which will own approximately 47.5% of the outstanding ordinary shares at the closing of the IPO, is a wholly owned subsidiary of China Resources Verlinvest Health Investment Ltd., a joint venture that is 50% owned by Verlinvest S.A., a Belgium company, and 50% owned by a subsidiary of China Resources Holdings.

In connection with the IPO, Oatly Group entered into an agreement with its shareholders and China Resources Holdings to, subject to certain conditions, seek an additional listing of Oatly Group’s ordinary shares on the Hong Kong Stock Exchange.

The Davis Polk corporate team included partners James C. Lin and Miranda So, counsel – registered foreign lawyer Xi Shi and registered foreign lawyer Rebecca Yang. All members of the Davis Polk team are based in the Hong Kong office.