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Shares of Beyond Meat climbed 135% Thursday, giving the plant-based meat substitute maker a market value of $ 3.52 billion.
The company's $ 46 opening transaction is made later than expected, hitting Thursday afternoon. Then, after equities rose 125%, trading was halted due to volatility. When trading resumed, equities rose even higher. The company trades on the Nasdaq under the symbol BYND.
On Wednesday night, Beyond set its initial public offering at $ 25 per share for an implied market value of $ 1.46 billion. Its IPO price is in the high range of the expected range of $ 23 and $ 25 per share. The Californian company based in El Segunda first set the range of $ 19 to $ 21 per share.
As more and more Americans adopt a flexitarian diet that reduces their consumption of meat for health and environmental reasons, herbal meat substitutes are gaining popularity. Beyond's meat alternatives, from faux ground beef to burger patties, are designed to more closely mimic the texture and taste of traditional meat. Gluten-free and soy-free products use pea and faba beans protein and can be found in grocery stores, as well as in restaurants such as TGI Fridays, Del Taco and White Castle.
In 2018, Beyond's business turnover amounted to $ 87.9 million, up 170% from net sales of $ 32.6 million recorded the year before . The company plans to use the proceeds of its IPO to invest in manufacturing facilities, research and development, and sales and marketing.
Big Food has become aware of the trend. In the fall, Nestlé will start selling its own factory-made burger to American consumers as Awesome Burger. According to Axios, Tyson Foods sold its minority stake in Beyond because it wanted to sell its own herbal protein.
Beyond is the last company to debut this year. Some, such as Levi Strauss & Co. and Zoom, have prospered since their IPO, while others, like the carpool giant, Lyft, have seen their stock plummet.
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