Beyond Meat Inc. on July 31 priced its public offering of common stock, the bulk of which is being sold by its shareholders.
The plant-based-meat producer is offering 250,000 of its common stock held by the company at $160 per share for total proceeds of $40 million before underwriting discounts and commissions and offering costs. Its shareholders are offering 3,000,000 of their common shares for the same price for total proceeds of $480 million.
Some of the company's existing shareholders also granted underwriters a 30-day option to purchase up to an additional 487,500 common shares at the public offering price.
The offer price represents an 18.58% discount to the company's closing price of $196.51 on July 31 but is 122.22% higher than Beyond Meat's IPO price of $72.00 in May.
Beyond Meat had earlier said that it plans to use the net proceeds from its offering to continue to increase its production and supply capabilities, to pay for marketing and promotional activities and for general working capital purposes. The company reiterated that it will not receive any proceeds from the sale of its selling shareholders' common stock.
The secondary offering is expected to close on or about Aug. 5.
Goldman Sachs & Co. LLC, J.P. Morgan and Credit Suisse are serving as lead book-running managers for the offering, while BofA Merrill Lynch and Jefferies are also acting as book-running managers, and William Blair and Raymond James are acting as co-managers.
Shares of the company fell 5.86% to $185 in after-hours trading following the pricing announcement.