Beyond Meat tumbles 12% after deeply discounted secondary offering
Shareholders locked in the gain after the fake-meat company’s nearly 700% rally in 2019, with revenue expected to be triple that of 2018
New York — Beyond Meat tumbled as much as 12% on Thursday to $172 after inside shareholders priced a secondary offering at $160 a share on Wednesday night, handing early investors a slice of profits and adding to company coffers as it looks to fund expanded production in an increasingly crowded vegan marketplace.
The offering price represents an 18.58% discount to Wednesday’s closing price, unusually steep for an offering of this size. Shareholders locked in the gain after Beyond Meat’s nearly 700% rally in this year’s best-performing initial public offering (IPO), selling 3-million of the 3.25-million shares sold, according to a statement confirming an earlier report by Bloomberg. That amounts to proceeds of $480m for holders, who sold off small portions of their stakes...