JBS proposes dual listing in Brazil and United States

Dual listing would better reflect Brazil-based company’s global presence, JBS says

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Benjamin Ruiz

JBS proposed a dual listing, in which the company would trade its shares on the SĂŁo Paulo Stock Exchange (B3) and the New York Stock Exchange (NYSE).

In doing so, JBS believes it would better reflect the company’s global presence, as well as unlock value for shareholders.

“Today, JBS presents a transformative value proposition to its shareholders and the market. 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,” the company stated.

Under the proposal, Level II Brazilian depository receipts will be traded on B3, backed by Class A shares listed on the NYSE. Minority shareholders may cancel BDRs at any time to directly hold Class A shares. A dividend distribution linked to the dual listing will be part of the transaction, given the strategic relevance of the proposal.

With annual revenues of BRL375 billion (US$78.2 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 U.K, Australia and New Zealand.

JBS, according to the WATTPoultry.com Top Poultry Companies Database, is the world’s largest poultry producer, having slaughtered 4.43 billion chickens during the past year. It’s key chicken brand in South America is Seara. It is also the majority shareholder of Pilgrim’s Pride, the second-largest poultry producer in the United States, which also operates in Mexico, as well as in Europe as the owner of Northern Ireland-based Moy Park.

Pilgrim’s is already publicly traded in the U.S. on the Nasdaq Exchange, under the PPC ticker.

If JBS’ dual listing is approved, 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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