Oatly, the Swedish company which makes vegan alternatives to traditional milk, is targeting a $10bn (€8.2bn) initial public offering (IPO) in the coming months as it seeks to accelerate its growth in the rapidly expanding market for plant-based alternatives.

The company announced this week that it had submitted the necessary paperwork to proceed with an IPO in the US later this year.

Founded in the mid-1990s, Oatly manufactures plant-based alternatives to traditional liquid milk that are made using oats. The company has seen rapid growth over recent years, with sales hitting €165m in 2019.

Last year, Oatly raised almost €170m from new investors, which included US investment firm, Blackstone, as well as celebrities Oprah Winfrey and Jay-Z. The 2020 funding round valued Oatly at €1.6bn at the time.

However, if this proposed IPO goes ahead, Oatly’s market valuation looks set to increase five-fold to €8.2bn this year.