Beyond Meat’s initial public offering (IPO) Thursday May 2, 2019, was the biggest first-day gain for a U.S. IPO since at least 2008. Share prices rocketed 163% higher, according to Bloomberg, leaving the start-up with a value of $3.8 billion.
Beyond Meat’s shares began trading at $46 and closed at $65.75. The shares priced at $25 late Wednesday, after the company raised the size and target price range for the offering to 9.625 million shares at $23 to $25 each, up from the previously expected 8.75 million shares at $19 to $21 each.
Bloomberg reported the first-day surge eclipsed the 81% gain by Silk Road Medical Inc. in its U.S. debut last month and was the best for a U.S. listing raising at least $200 million since before the 2008 financial crisis. Globally, Beyond Meat bested the debuts this year of all but a handful of small listings, none of them larger than $22 million.
Beyond Meat CEO Ethan Brown doesn’t expect a conflict between making environmentally based decisions and those that serve shareholders.
“Consumers are looking for products that enable them to be healthier and reduce their footprint,” he said in an interview. “Every time we’re making a sale we’re furthering our mission and increasing sales.”