July 12, 2023
JBS today announced a long-awaited proposal to list company shares on the New York Stock Exchange (NYSE) and the São Paulo Stock Exchange (B3), using Brazilian Depository Receipts (BDRs). JBS initially announced U.S. IPO plans in December 2016, but the involvement of company executives in numerous ongoing scandals led the company to forego the plans in 2017. The impact of the COVID-19 pandemic further delayed the company’s plans.
Gilberto Tomazoni, chief executive officer of JBS Global, said the “transformative value proposition” will unlock the potential value of the company for all stakeholders.
“The dual listing strategy will accelerate our capacity for diversification and growth into more branded and value-added food products, reduce our cost of capital and generate greater returns for shareholders, while creating opportunities for the communities where we operate and for our more than 260,000 team members around the world,” he said.
With annual revenues of R$375 billion, JBS operates a diversified, global food production platform, with operations and commercial offices in 24 countries, and over 330,000 customers in more than 190 countries. Established in Brazil 70 years ago, nearly 60% of its global workforce resides in Brazil, producing food and related products in more than 130 production facilities spread across all regions of the country. The company also has significant operations in North America, Europe, the UK, Australia and New Zealand.
"This proposal will enhance transparency and strengthen corporate governance, attracting a broader base of investors with greater financial capacity,” said Guilherme Cavalcantich, chief financial officer of JBS Global. “Importantly, the proposal will provide flexibility to finance growth through the issuance of equity while reducing the cost of capital, allowing the company to compete on an equal footing with global peers.”
The company said its proven operational structure, including assets, supply chains and financial flows around the world, will not be impacted by the proposed dual listing.
“The market has patiently requested this next step from our company, and we believe we have responded with a compelling proposal that reinforces our commitment to Brazil, creates value for our stakeholders and should be well received by minority shareholders and the market,” stated Tomazoni.
The company will be subject to regulations set forth by the U.S. Securities and Exchange Commission (SEC), NYSE and the Brazilian Securities Commission (CVM).
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