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Beyond Meat Falls After Deeply Discounted Secondary Offering

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Beyond Meat Shares Drop After Secondary Offering
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Beyond Meat Inc. tumbled as much as 12% on Thursday to $172 after inside shareholders priced a secondary offering at $160 per share 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 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 $480 million for holders, who sold off small portions of their stakes.