Beyond Meat Seeks To Test International Potential With An Upcoming IPO

On Monday 22 April, Beyond Meat updated its IPO filing where it offered the price it expects to launch with. In the filing, the company revealed that the price range for the major event in its lifetime should lie between $19 and $21. Notably, the company will list on NASDAQ in the opening weeks of May.

For starters, Beyond Meat filed to go public in late November 2018. The company broke onto the scene with an innovative product where it produces lab-grown meat that is plant-based. Since formation in 2016, over 25 million burgers with the plant-based meat have been sold. Notably, the lead product that utilizes the vegan meat is the “Beyond Burger” brand.

The vegan burger is less damaging to the climate

To be sure, the vegan burger is gaining popularity because of the environment sensitive process that goes into its production. According to the company, the production process of Beyond Burgers uses 99% less water than traditional burgers. Further, the major raw material for the vegan burger occupy 93% less land, creates 90% less greenhouse gas, and uses 46% less energy than the raw materials that go into traditional beef-based burger. The numbers are as a result of an analysis conducted by the University of Michigan. Therefore, it is obvious that vegan burger is easy on the environment and that it could be the answer to the many questions arising from global warming.

Interestingly, the positive image of the vegan burger already caught the attention of big name fast-food chains and department stores. To be sure, a recent report by Bloomberg indicates that Burger King is considering including vegan burgers on its menu. In particular, the chain could be considering kicking off the venture with Impossible Burger’s products but the overall feel is that there is a positive sentiment that is firming up.   

Vegan products are gaining products especially in Europe

In Europe, the shift toward plant-based products became apparent last year. Notably, various supermarkets announced last year that they would soon begin stocking vegan burgers. To be sure, 42 Tesco stores in Ireland began stocking Veggie Steak from mid-November last year.On the other hand, UK Tesco introduced the product earlier in2018. In mid-November 2018, Tesco UK said it would begin stocking Beyond Meat products.

Following the success and the apparent market potential, Beyond Meat decided to go public. In the initial IPO filing, the company is eying a valuation of about $1.2 billion. Notably, the company anticipates selling common stock in the order of 8.75 million shares.

Beyond Meat boasts strong investor support

To demonstrate its resolve toward the IPO, the company has already solicited financial commitment from several fund managers, and individual and institutional investors. In particular, the target amount the company is looking to raise is $200 million. But so far it has collected around $122 million from key investors such as Bill Gates, DNS Capital, Cleveland Avenue, and Kleiner Perkins among others.

Interestingly, the company received all the financial backing despite making huge losses two years in a row. In FY 2017, the company made $30.4 million in operational losses and a further $29.9 million during the FY2018. Nonetheless, the revenue is growing steadily considering that it sold products worth $16.2 million in 2016 which grew to $87.9 million last year.