No reason was given to the SEC for the company no longer wanting to pursue the IPO.
The company initially filed for the IPO in December 2016 in hopes of raising up to US$500 million.
However, the U.S. subsidiary of Brazil-based meat and poultry company JBS, announced several months later that while the IPO would take longer than initially planned.
Since JBS filed for the IPO, the company has been mired in scandals. First, it was Operation Weak Flesh, in which a number of Brazilian meat and poultry companies were accused of bribing inspectors to allow meat unfit for consumption to be allowed into commerce.
The company later found itself connected to a corruption scandal, in which JBS Chairman Joesley Batista and JBS CEO Wesley Batista, who are brothers, admitted to bribing more than 1,800 politicians. They have most recently been accused of insider trading for allegedly using privileged information obtained during the plea bargaining process for the corruption scandal to improve their financial positions. Both remain jailed, and both have stepped down from their leadership roles within the company.
The brothers’ father, José Batista Sobrinho, also the founder of JBS, is the current CEO, while Tarek Farahat is the current chairman.
Brazil's JBS withdraws plan for U.S. processed food unit IPO
JBS SA has pulled a planned $500 million initial public offering of processed food subsidiary JBS Foods International BV, almost six months after a spree of corruption and food safety scandals in Brazil hurt investor demand for the deal.
Brazil’s JBS withdraws IPO of US unit
Brazil’s JBS, the world’s largest meat processor, has pulled plans to list its U.S. unit following a tumultuous year that saw the company engulfed by a food safety scandal as well as multiple corruption investigations.