- Beyond Meat prices its secondary stock offering at $160, six times the price of its IPO.
- The share price is an 18.6% discount from the stock's closing price on Wednesday.
- The plant-based meat maker plans to sell 3.25 million additional shares of its stock.
- It says it wants to raise $40 million to expand its manufacturing to meet the robust demand for its products.
Shares of Beyond Meat skidded almost 11% Thursday, a day after the company priced its secondary stock offering at $160, six times the price of its IPO.
The share price is an 18.6% discount from Wednesday's closing price. The plant-based meat maker said it plans to sell 3.25 million additional shares of its stock, with 3 million coming from investors and 250,000 from the company.
The company said it wants to raise $40 million to expand its manufacturing to meet the robust demand for its products.
Since the initial public offering of $25 a share in May, optimism from investors along with those looking to bet against the company have sent its stock soaring.
But the hot streak snapped Monday, after the company posted mixed second-quarter earnings and announced the stock offering, sending its shares plunging more than 13% in extended trading. The company is valued at $10.56 billion, and is now up almost 600% since its IPO.
Meat alternatives have experienced rising popularity among consumers looking to reduce their meat intake for health and environmental reasons. Beyond Meat and rival Impossible Foods have been signing new deals with restaurants looking to add these foods to menus.
Burger King said Thursday it would expand its use of the vegan Impossible Whopper to restaurants nationwide. Impossible Foods also plans to begin competing with Beyond Meat in grocery stores, starting in September.
Correction: A previous version incorrectly stated the decline in Beyond Meat shares.