Yogurt giant Chobani scrapped plans to go public, the company revealed in a Securities and Exchange Commission filing Friday, giving up on an initial public offering once reportedly valued at more than $10 billion amid the cooling market.
Chobani did not give a reason for the reversal in the filing, but a company spokesperson attributed the withdrawal to “current market conditions” in a statement to Forbes.
Chobani joins several other companies in walking back IPO ambitions in recent months amid the stock market’s struggles: There were 46% fewer IPO deals globally in the first six months of 2022 compared to the same period last year, according to Ernst & Young, while IPO proceeds declined 58% in the time frame.
CNBC first reported on the filing.
Last year was the largest on record for IPOs thanks largely to the explosion of special-purpose acquisition companies (SPACs), though the market began to quiet by year-end, and poor overall market conditions in 2022 contributed to the downtrend. Chobani disclosed stagnating growth and five straight years of net losses in its IPO filing, leading some to assess a $10 billion valuation was far too rich. A Chobani spokesperson noted Friday the company’s “focus remains on strong execution and driving profitable growth.” Chobani has a 20% market share for all yogurt and 44% share of Greek yogurt in the U.S., according to Quartz.
“Fatigue is inevitable,” Avery Spear, a senior data analyst at Renaissance Capital, told Forbes about the IPO slowdown in 2022, explaining that IPOs represent “too much risk for investors” in the current market.
We estimate Chobani founder and CEO Hamdi Ulukaya, dubbed the “yogurt king,” is worth $2.2 billion.