Beyond Meat, the food company known for vegan burgers, has been collecting fresh money from investors since its IPO at the beginning of May, as announced. A further 3.25 million shares would be offered at 160 US dollars (144 euros) each, as the company announced on Wednesday (local time). The offer is to be completed by 5 August. Of the total of 520 million dollars, however, only 40 million will flow into Beyond Meat's coffers, as by far the largest share of the papers comes from existing shareholders. A further almost 500,000 shares from the old owners' holdings may be added.
The price of 160 dollars for the shares is about 18.6 percent below the closing price of 196.51 dollars on Wednesday. In pre-IPO US trading, shares fell by about 10 percent to 176.50 dollars on Thursday.
With the sale of the shares, existing shareholders in particular are taking advantage of the strong price gains since the IPO at the beginning of May. At that time, Beyond Meat had issued shares at 25 dollars each. The hype surrounding the company's vegan burgers drove the share price to a record high of 239.71 dollars by the end of July. That was almost a tenfold increase.
The fact that Beyond Meat does not earn any money so far does not bother investors so far - in the last quarter the loss increased by more than a quarter to 9.4 million dollars compared to the value of the previous year. Investors are counting on the fact that the strong sales growth can be converted into profit at some point. Sales in the second quarter almost quadrupled year-on-year, as has been known since the end of July.
However, competition in the market for meat alternatives is fierce. In order to survive in a competitive environment and to be able to drive growth forward, money is needed./mis/elm/jha/ (dap)
Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.