Investors Bite Into Beyond Meat IPO With Shares Surging 160 Percent
Investors took quite a big bite out of Beyond Meat’s IPO, as indicated in the massive 160 percent increase during the firm’s stock market debut. The company is the first publicly listed plant-based meat substitute manufacturer, an industry that is now steadily growing in popularity across the country.
Beyond Meat’s stock prices opened at around US$46 per share, well above its initial IPO price of US$25. At the start of the trading day, prices surged in the first few hours, which was followed by a series of fluctuations. The Los Angeles-based firm’s stocks traded as high as US$72 during the day, before closing at US$65.75.
Despite previous negative sentiments regarding the company’s public performance, Beyond Meat managed to beat all expectations and closed its IPO debut with a market valuation of US$3.8 billion. The IPO itself, including shares outstanding and underwriting, raised more than US$240 million for the company.
The fresh capital will reportedly be used by the company to further enhance its manufacturing process and in further research and development for its plant-based substitutes. This would likely give it a big edge over its main competitors, such as the Silicon Valley startup firm Impossible Foods.
Beyond Meat’s CEO, Ethan Brown told reporters following its IPO that it will also be investing heavily in its marketing efforts to make more Americans aware of its slew of products. The company also plans to open new manufacturing facilities within the United States, as well as new production centers in Asia and in Europe.
The company is currently also facing stiff competition from other startups, who have shown interest in the increasingly crowded imitation meat industry. The industry has thus far been bolstered by the increasingly healthy outlook of Americans and the demand for more healthy food options.
Prior to its IPO, Beyond Meat had caught the eye of a number of high-profile investors, including well-known environmentalist and influencers. This includes actor Leonardo DiCaprio and billionaire entrepreneur Bill Gates.
The firm’s meats-less burger patties, as well as its other imitation meat products, have found their way into major supermarkets and restaurant across the country. Although the products are meant for vegetarian, the company has so far avoided labeling its products as such to attract meat lovers as well.
Beyond Meat’s plant-based patties and sausages could be particularly useful for meat-lovers who are trying to eat healthier and those who are suffering from illnesses that would otherwise prevent them from eating too much meat. The company’s products have also been endorsed by organizations who are concerns about animal welfare and the negative effects of intensive animal farming.