Beyond Meat recently announced that they will be issuing a new public stock offer called a “secondary offer”. It is “secondary” because the first public offer was their Initial Public Offer (IPO) several months ago.
While this is a public offer, that doesn't necessarily mean it will be easy for the public to invest! To help you understand how new public offers are sold and who gets to buy in, please watch the video I created about what's happening. In the video and this blog, I explain how members of the general public may be able to purchase the new shares in Beyond Meat and give the company additional new operating capital in exchange for share ownership.
The first thing to understand is that any public offer of stock in the U.S. requires a filing with the Securities and Exchange Commission (SEC). An easy way find the filings is to go to the stock exchange where the company will be or is already listed and look up the filings.
Once you open the S-1, enjoy reading as much as you like. Eventually, though, you want to head down to page 152. There you'll see a list of the “underwriters”. These are the brokerage firms that are authorized to distribute shares of the new BYND secondary offer to their customers.
To save you a few minutes of research, here is the list of underwriters from page 152:
- Goldman Sachs & Co. LLC
- J.P. Morgan Securities LLC
- Credit Suisse Securities (USA) LLC
- BofA Securities, Inc.
- Jefferies LLC
- William Blair & Company, L.L.C.
- Raymond James & Associates, Inc.
If you don't already have an account with one of these firms, you can call them to learn how you can purchase shares of the BYND secondary public offer. Goldman Sachs, JP Morgan, and Credit Suisse are the lead underwriters, while the remaining firms on the list are second level underwriters. If you have an existing account with any of the firms on the list, that would be a good place to start. The second level underwriters may be able to provide greater access to those who would need to open a new account in order to participate. In the end, all of the firms will have internal rules determining which of their clients will be given access.
Why Vegans Might Want to Purchase the Secondary Public Offer for Ethical Reasons
If you saw the prior post on why I don't plan to purchase Beyond Meat stock, one of the main reasons is that purchasing stock on the public stock market typically means trading dollars with another investor. None of your money goes into the hands of the company itself. The main Vegan Launch thesis is that to grow the vegan economy, vegans should directly finance vegan startups, and our focus is on providing vegans access to the very first rounds of capital, such as the first investment rounds of Beyond Meat about which occurred about 10 years ago.
Given the new secondary public offer, Beyond Meat is presenting more like a late stage startup than a mature public company, and still raising risk tolerant capital to accelerate growth and gain market share. If you feel ethically that Beyond Meat is doing good for veganism, here is an opportunity to put money directly into the hands of Beyond Meat's management team to help the company grow faster.
Will you make money by purchasing shares of the secondary public offer? Vegan Launch is not in the business of making financial projections, but I still feel that Beyond Meat remains a high risk, low return opportunity compared to other well organized vegan startups we're seeing.
If you'd like to see some information that might help you make your own estimate Beyond Meat's future stock valuation, I recommend watching this Beyond Meat analysis recently posted by one of my favorite YouTube analysts, Galileo Russel of HyperChange.