Shares of Brazilian meat giant JBS made their U.S. public market debut on Friday, opening at $13.65 a share.
JBS is now trading on the New York Stock Exchange under the ticker “JBS,” a day later than initially expected.
Then, in late 2016, the company said it would have a U.S. initial public offering as part of a broader reorganization strategy.
But months later, the Brazilian government began investigating corruption in the meatpacking company — including among JBS and its top executives.
The SEC approved JBS’s request to list on the New York Stock Exchange in April.
The stock of the massive Brazilian meat company JBS fell. A. Friday saw its debut on the public market, with a share price of $13:65.
The company is worth about $30 billion at the opening trade, which is more than rival Tyson Foods’ market value of roughly $19–82 billion.
JBS is now trading under the ticker “JBS,” one day later than anticipated, on the New York Stock Exchange. According to the company, it was unable to complete some operational processes in time for Thursday’s debut. As part of the dual-listing strategy, its stock was delisted from the Sao Paolo Exchange in Brazil one week ago.
JBS has expanded to become the largest meatpacking company in the world since its founding more than 70 years ago. Regulatory filings from the previous year show that the company’s net revenue was $77.2 billion and its net income was $2 billion.
JBS is a multinational corporation with sizable operations in Brazil, the U.S. A. Australia as well. The business also owns over 80 percent of Pilgrim’s Pride in the United States. S. . giant of poultry. .
U.S. S. listing has been in the works for over 15 years. The business’s U. A. In 2009, the subsidiary first declared its intention to go public, but after two delays, the plan never materialized. Later, in late 2016, the business announced that it would have a U. S. IPO as a component of a larger restructuring plan. However, the Brazilian government started looking into corruption in the meatpacking company a few months later, including among JBS’s top executives.
In 2017, JandF Investimentos, the holding company that controls a majority of JBS, settled bribery charges by paying a $3.02 billion fine. By working with prosecutors, the company’s top shareholders and the founder’s sons, former chair Joesley Batista and his older brother CEO Wesley Batista, were able to avoid jail time. The U reached a settlement with the Batistas and J&F. S. Securities and Exchange Commission for about $27 million in 2020.
After the scandal, the Batistas left J&F. However, last year, after being cleared of insider trading charges, they rejoined the company’s board.
The Brazilian government fined JBS in October for purchasing cattle that were purportedly illegally raised on Amazonian protected land.
Opposition to the company’s U.S. was prompted by its history of corruption and bribery allegations. S. listing from both parties of the legislature, suggesting that regulators would not likely approve it.
Pilgrim’s Pride, a subsidiary of JBS, became the single largest donor to President Donald Trump’s inauguration committee after his reelection, contributing $5 million. At the time, the company said in a statement to CNBC that it had a “long bipartisan history participating in the civic process” and that it was eager to collaborate with the incoming government.
In April, JBS’s application to list on the New York Stock Exchange was granted by the SEC. The following month, JBS shareholders narrowly approved the move.
