Plant-based meat maker Beyond Meat saw its shares spike 135% following its IPO, leading to a $3.52 billion market value.
The El Segundo, California-based company’s shares opened at $46 Thursday, nearly double the $25 the company set for its initial public offering on Wednesday evening.
Shares of Beyond Meat’s “BYND” Nasdaq stock later shot up 135%, taking the company’s value as high as $3.52 billion.
According to a MarketWatch report, the company’s gains continued throughout the morning, reaching a high of $63.43, which is about 154% more than its initial high.
Beyond Meat initially planned to sell shares for $19-$21, according to an April 22 Securities and Exchange Commission (SEC) filing; however, Wednesday’s price increase to $25 suggested an anticipation of strong demand from investors.
Beyond Meat’s Wednesday initial public offering at $25 per share for the sale of at least 9.6 million shares raised the company $241 million.
Speaking to CNBC, Founder and CEO Ethan Brown talked about the next steps for Beyond Meat. “Right now we’re only 2% household penetration,” said Brown.
“If you think about where we are in conventional grocer, we became, over the last summer, at least in our region of the country in Southern California, the number one packaged burger patty in the meat case in the nation’s largest conventional grocers.”
“We’re going to build out that block so we offer consumers a variety of choice, not just burgers, not just sausage but throughout the whole value chain.”
“I’m also excited about international growth and ultimately the five year program to get really aggressive on pricing.”
Brown previously discussed the company’s plans to lower the price of Beyond Meat below animal-derived meat by using alternative protein sources with help from funds raised in the IPO.
Beyond Meat is part of a new wave of vegan meat alternatives designed to look and taste like animal-derived meat.
Brown says that Beyond Meat is not made to compete with other vegan and vegetarian brands; the company considers itself a direct competitor to pork, beef and other non-vegan products.
So far, the company has been successful in attracting meat eating and flexitarian customers, who make up the vast majority of Beyond Meat consumers.
This is partly due to consumer demand for tasty and healthier plant-based alternatives as people turn toward a more plant-rich diet due to concerns about health and the environment.
Beyond Meat products include chicken, ground beef, sausages and its signature Beyond Burger, all made without any animal products.
BYND is currently trading at $64.89.