After the joining the IPO cohort this year, Beyond Meat so far had the strongest market debut with shares surging as high as 163%, giving the company a market valuation of $3.77 billion.
The company’s trade started with $46, later soaring to 125% and then finally to 163% after a brief pause over volatility.
The plant-based meat substitute manufacturer price its initial public offering at $25 implying a market value of $1.46 billion. Its IPO price is on the high end of its expected range of $23 and $25 per share. Proceeds from the IPO will go towards investment in manufacturing facilities, research and development, and sales and marketing.
Beyond Meat has fast gained popularity as more Americans are embracing ‘flexitarian’ diet, cutting down their meat consumption over health and environmental issues, and opting for plant-based meat substitutes that closely mimic the taste and texture of actual meat, like fake ground beef and burger patties. The gluten and soy-free products use proteins from peas and faba beans and can be found at grocery stores, as well as restaurants like TGI Fridays and Del Taco (TACO).
Following this trend, others like Big Food, Tyson Foods (TSN) and Nestle will start its own brand of meat substitutes.
In 2018, Beyond Meat clocked in a revenue of $87.9 million in comparison to last year’s $32.6 million sales, a surge of 170%.