As soon as I went vegan, it became really clear that veganism is growing fast, and Beyond Meat is crushing it.
They are dominating a rapidly expanding niche, and it’s going to be years until any competitor can compete with their quality or scale.
If I could invest in Beyond Meat today I would, and I’m sure you would too.
But here’s the bad news…
Beyond Meat is still a private company, meaning you can’t invest in them right now.
Sadly, there aren’t many vegan companies to invest in right now.
However, they have started to prepare to go public.
As of mid-October, 2018, Beyond Meat has hired J.P Morgan, Goldman Sachs and Credit Suisse to lead their initial public offering (IPO). On November 16th, they officially filed for a U.S. IPO.
Update: As of the first week of December (the 3rd to 7th), Beyond Meat is eligible to launch their IPO, using the symbol “BYND”. This means they could launch this week, but it appears they’ll hold off for quite a while.
Update #2 (Apr. 22, 2019): Beyond has announced that their IPO will be priced somewhere between $19-21 per share, with 8.75 million shares being offered. Their goal is to raise $183 million, but it could raise up to around $210 million if demand is high enough.
Update #3: The IPO happened on May 2nd, 2019.
If you’re not sure what an IPO is, or what that means for you, let me go over a few basics here.
First, What is an IPO and how do you invest in one?
An IPO is the first chance the public has to buy stocks of a formerly private company.
Private companies use IPOs to raise money to raise money to either expand or let early investors cash out.
During the IPO, not everyone can buy stocks. You’re not going to be able to open an investment account with $1,000 and buy shares. Typically you need to:
- Have a large account.
- Have a broker who received an allocation of IPO shares.
- Be a frequent trader.
Needless to say, if you’re reading this now, you probably don’t meet those conditions. I sure don’t. (If you do meet them, your investing account should have an “IPOs” section, which allows you to buy IPO shares just like any other stock.)
So are we just out of luck? Not completely.
You and I won’t be able to invest in the IPO. But after the IPO is complete, the stock will be listed on the market (usually 7-10 days after) where it can be purchased like any other stock.
Be warned, stock prices after IPOs can be kind of crazy. They can rapidly go up or down depending on the hype surrounding the IPO, and there’s sure to be a lot for Beyond Meat.
It’s up to you if you want to invest as soon as it hits the market, or wait 4-5 months for it to settle down. I’m far from an investing expert, so I can’t tell you anything more than that.