Shares of Beyond Meat (NASDAQ:BYND) fell hard Thursday after the company announced Wednesday afternoon that it priced its secondary stock offering at $160, six times the price of its IPO.
The company specializes in plant-based meat products which have been picked up by fast food giants.
The share price is an 18.6% discount from the stock’s closing price. The plant-based meat maker plans to sell 3.25 million additional shares of its stock, with three million coming from investors and 250,000 from the company.
The company said it wanted to raise $40 million to expand its manufacturing to meet the robust demand for its products and the market itself.
Since its 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. Last week, shares hit an all-time high of $208.48, up 720% since the IPO.
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 $11.8 billion.
Burger King said Thursday it would expand its use of the vegan Impossible Whopper to stores nationwide. It also plans to begin competing with Beyond Meat in the grocery store, starting in September.
Shares began the trading day Thursday down $18.20, or 9.3%, to $178.31
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