Packages of Chobani yogurt sit on the shelf of a grocery store on July 7, 2021 in Washington, DC.
Drew Angerer | Getty Images
Chobani is withdrawing its plans for an IPO, according to a listing filing on Friday.
The food and beverage company filed for an initial public offering on the Nasdaq Exchange in November using the ticker “CHO.” Reuters reported that the yogurt maker is targeting a valuation of more than $10 billion.
But it’s been a tough year for the stock market, which has led to a drought of IPOs. According to a recent EY report, there were just 41 IPOs in America in the second quarter, down 73% from the year-ago period. Chobani joins payroll provider 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 pullback.
“Our focus remains on strong execution and driving profitable growth, and we remain excited about Chobani’s future,” the statement said.
In recent years, Chobani has expanded its product portfolio beyond Greek yogurt, adding oat milk, coffee creamer, cold brew coffee and yogurt drinks to its offering.
In its IPO filing, the company said its revenue grew 5.2% from 2019 to $1.4 billion in 2020. However, its net loss more than tripled during that time, reaching $58.7 million as it reinvested in its business. Chobani said it plans to use some of the proceeds from the IPO to pay down debt. The company also said it will reorganize its corporate structure as part of the process.
In March, amid delays in the IPO, Chobani’s then operations director, Peter McGuinness, joined Impossible Foods, where he now serves as chief executive. GlobalData chief executive Neil Saunders said in a statement that despite its strong revenue growth, the departures of top executives like McGuinness have cast a shadow over Chobani.
“This has created the impression of serious disagreements at the top, which isn’t exactly the message that a company looking to go public wants to convey,” he said.