Beyond Meat has announced that it expects to price 8.75 million shares at between $19 and $21 each when it becomes the first publicly traded plant-based meat company in May. The shares will be sold on the Nasdaq exchange.
This announcement would see the value of the company reach up to $1.2 billion, slightly less than the $1.3 billion at which it was valued during its most recent private investment round, reports the New York Times.
Beyond Meat plans to raise up to $184 million through this initial public offering, for which it filed in November. Underwriters for the IPO include Goldman Sachs, J.P. Morgan, Credit Suisse, and Merrill Lynch. Funds raised during the IPO will be used for a myriad of endeavors including the development of new manufacturing facilities and marketing initiatives.
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The company has increased its net revenue nearly sixfold over the past two years, from $16.2 million in 2016 to $87.9 million in 2018. The company has also raised more than $150 million from private investors including Bill Gates, Leonardo DiCaprio, former McDonald’s CEO Don Thompson, and Twitter co-founder Biz Stone. In 2016, Tyson Foods announced it had invested a five percent stake in the company.
In recent years, Beyond Meat has formed partnerships with restaurant groups like Del Taco, A&W Canada, and Carl’s JR. Beyond Meat products including its flagship Beyond Burger as well as its Beyond Sausage are also sold at retailers like Whole Foods and Kroger.
According to data from research firm Markets and Markets, the market for plant-based meat alternatives worldwide is expected to grow to $6.4 billion by 2023. According to Euromonitor, the overall market for meat replacements in the U.S. grew approximately 22 percent last year.
Research has linked plant-based diets to improved heart health and lowered risk of diabetes. Transitioning to a plant-based diet has also been associated with a smaller carbon footprint and reduced greenhouse gas emissions, notably in a research review from the University of Oxford.
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