Beyond Meat looks to raise $183.8 million through its IPO
Beyond Meat, the California-based manufacturer of plant-based meat substitutes, expects its initial public offering to range between $19-$21 per share, triggering an estimate raise of $183.8 million through the IPO. This will give the company a market value of $1.21 billion.
Proceeds from the IPO, for which it had filed the paperwork at the end of March, will go into investing in current and additional manufacturing facilities, research and development, sales and marketing, working capital and other general corporate purposes.
The number of Americans choosing vegan or vegetarian diets has stagnated over the last decade, but more people are now opting ‘flexitarian’ diets, accounting for nearly 40% of the population embracing more plant-based foods as substitutes for real meat. So Beyond Meat is taking advantage of people’s increasing awareness of meat related health and environmental hazards and have created products that mimic the actual taste and texture of meat.
Such burgers with fake meat can be found at national restaurant chains like Carl’s Jr. and T.G.I Friday as well as in grocery stores like Whole Foods, Kroger (KR) and Target (TGT).
Beyond’s high profile investors includes big names like Bill Gates, Leonardo Di Caprio and Tyson Foods (TSN). In 2018, the company reported revenue of $87.9 million and a net loss of $29.9. Companies like Goldman Sachs (GS), J.P. Morgan (JPM), Credit Suisse (CS), Merrill Lynch, Pierce, Fenner & Smith, Jefferies and William Blair are expected to underwrite the IPO.
