A little detail on Beyond Meat and what an IPO is
Beyond Meat is a producer of plant-based meat substitutes based in Los Angeles. It was founded in the year 2009 by Ethan Brown. The company is valued at $3.8 billion and in 2019 had its best first day for an Initial Public Offering in the US.
IPO is an acronym for Initial Public Offering. So, it is the company’s first introduction to the public market. It is the process by which a private company issues its first shares of stock to the public for sales. This is usually have done to raise capital for the company so that it grows further and also to enrich investors.
How has the IPO affected Beyond Meat?
Beyond Meat, the maker of plant-based beef and pork substitutes opened on Thursday, May 2nd on the Nasdaq stock market at $46, after pricing its shares at $25. The stocks have closed on that day at $65.75, a premium of 163 percent. Interestingly, the company has generated a revenue of nearly $88 million which was more than twice its revenue in 2017. But still has recorded losses as it has yet to turn out profits.
Raised IPO Revenue and Investment
The facts above have been used to answer the most asked question about the Beyond meat Rapid Run. The question is “Is Beyond Meat Rapid run a sign of an IPO-Driven bubble?” The answer obviously is yes. The rapid run is as a result of the more than $240 million have raised in the IPO. The company plans to invest in manufacturing, expand research and development, and bolster marketing.
The company has stated that it is tapping into broader public awareness about health. Also about animal welfare, climate change, and environmental conservation. The only snag here is its reliance on pea protein which is a risk factor to this.