Drew Anger | Getty Images Chobani is withdrawing its plans for an initial public offering, according to a regulatory filing on Friday. The food and beverage company filed to list on the Nasdaq stock exchange using the ticker symbol “CHO” in November. Reuters reported that it was seeking a valuation of more than $10 billion. But it’s been a tough year for the stock market, leading to an IPO drought. In the second quarter, there were just 41 initial public offerings in America, down 73% from the year-ago 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 Chobani’s future,” the statement said. In recent years, Chobani has expanded its product portfolio beyond Greek yogurt, adding oat milk, coffee creamers, iced coffee and yogurt drinks to its roster. In its IPO filing, the company said its revenue rose 5.2 percent to $1.4 billion from 2019 to 2020. However, its net loss more than tripled during that period, to $58.7 million, as she reinvested in her business. Chobani said it plans to use a portion of the IPO proceeds 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-chief operating officer, Peter McGuinness, left for Impossible Foods, where he now serves as chief executive. Neil Saunders, chief executive of GlobalData, said in a statement that the departures of top leaders such as McGuinness have cast a shadow over Chobani, despite strong sales growth. “This has given the impression of serious disagreements at the top, which is not exactly the message that a company looking to go public wants to convey,” he said.
