Plant-based substitutes for meat have been gaining popularity as more people shift towards vegan or vegetarian diets.

Earlier on Tuesday, the company raised the size and price of its offering after increased demand from investors. The IPO raised $240 million.

The money raised from the IPO gives Beyond Meat firepower to compete with its chief rival and Silicon Valley startup Impossible foods.

Plant-based substitutes for meat have been gaining popularity as more people shift towards vegan or vegetarian diets, amid growing concerns https://reut.rs/2Dri7JQ about animal welfare and the environmental hazards of intensive animal farming.

Burger King and Impossible foods last month started selling their vegan burger Impossible Whopper in 59 stores in and around St. Louis, Missouri.

Los Angeles-based Beyond Meat began selling its plant-based burger at fast-food chain Carl's Jr in January.

The company said it intends to use a bulk of its IPO proceeds for research and development, as well as building manufacturing facilities.

Beyond Meat creates substitutes for meat by using ingredients that mimic the composition of animal-based meat, like proteins from peas, faba beans and soy, that look and cook like beef or chicken.

Reuters