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Alternatives to meat are entering the public market with the Beyond Meat public offering, with the company's shares skyrocketing above their initial catalog price.
The company's shares climbed 135% in the opening of the market, valuing the company at $ 3.52 billion. Volatility was so high in the company's shares that the Nasdaq had to suspend the trading of "BYND" shares.
The company's first transaction was $ 46 at 12:18 pm Is, according to a report in MarketWatch. That's 76% more than the original price. The gains spread throughout the morning to an intra-day high of $ 63.43 (about 154% above its initial level) and the stock now trades at about $ 55 per share.
The company has set the price of its public offering at $ 25 a share last night, which corresponds to the top of an already rising share price (likely in response to shareholder demand ).
In total, the company raised more than $ 240 million for just under $ 1.5 billion through the sale of at least 9.6 million shares during the training yesterday.
"Beyond the meat is a pioneer in the movement of herbal meat, and the list is a remarkable and unprecedented move for the industry, "said Bruce Friedrich, executive director of the research and monitoring group of the industry of the Sustainable Food, Good Food Institute. "Although this is the first company to go public, this initiative could pave the way for other plant-based meat producers to monitor the situation."
The appetite of investors for the company comes despite its balance sheet problems. Beyond the meat has recorded a net loss of $ 29.9 million on a turnover of $ 87.9 million for 2018.
What holds investors in favor of an investment in the company seems to be its gross margin, which stood at 25% for the first quarter and 20% for 2018, up from the negative margins of the year former.
The success of the company could be a harbinger of things to come. There is a harvest of alternative meat and protein substitutes on the market or in the market – and they have been hugely popular with customers.
Earlier this week, Burger King announced that it will begin the national roll-out of its Impossible Whopper product, as well as companies like Memphis Meat, which develops lab-grown animal protein, and Sustainable Bioproducts, another developer of protein replacement solutions, is waiting for the launch of their products.
Beyond Meat's public offering is the second liquidity event for a company in the sustainable food market. The largest acquisition of WhiteWave Foods by Danone in 2017, after being listed on the stock exchange five years earlier, accounted for $ 12.5 billion.
"Obtaining funds like this is a big deal for Beyond Meat and will allow it to strengthen its supply chain capabilities and make the delicious herbal meat available to everyone," said Friedrich in a statement. . "Investors recognize that it is not a niche, but a public movement and a huge business opportunity …" Beyond the meat is on the border of the transformation of the food system. Their success and that of other herbal meat manufacturers could help repair our food system and mitigate the many damage caused by conventional meat production. "
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