JBS Debuts on NYSE, Valued at $30 Billion, Surpassing Tyson Foods

JBS, the Brazilian meat processing giant, made its debut on the U.S. public market on Friday, opening at $13.65 per share. This opening price valued the company at approximately $30 billion, surpassing its competitor Tyson Foods, which has a market capitalization of around $19.82 billion. JBS is now trading under the ticker symbol "JBS" on the New York Stock Exchange, with its listing date pushed back by a day from the initially planned date. The company cited the inability to complete certain operational procedures in time as the reason for the delay. As part of its dual-listing strategy, JBS's shares were delisted from the São Paulo Stock Exchange a week prior.

Founded over seven decades ago, JBS has grown into the world's largest meat processor. According to regulatory filings, the company generated $77.2 billion in revenue and $2 billion in net profit last year. JBS operates globally, with significant operations in Brazil, the United States, and Australia, and holds over 80% of the shares in Pilgrim’s Pride, a major poultry company in the United States.

JBS's journey to a U.S. listing has been a lengthy one, spanning over fifteen years. Its U.S. subsidiary first announced plans to go public in 2009, but the initiative was delayed twice and ultimately did not materialize. In late 2016, the company announced plans to launch an initial public offering in the U.S. as part of a restructuring strategy. However, a few months later, the Brazilian government began investigating corruption in the meat processing industry, which implicated JBS and its executives.

The controlling shareholder, J&F Investimentos, paid a $3.2 billion fine in 2017 to settle bribery allegations. The former chairman, Joesley Batista, and his brother, the CEO Wesley Batista (the sons of the company's founder and largest shareholder), avoided jail time by cooperating with prosecutors. In 2020, the Batista family and J&F reached a settlement with the U.S. Securities and Exchange Commission, paying approximately $27 million. Following the scandal, the Batista family stepped down from J&F but returned to the company's board after being acquitted of insider trading charges last year. Recently, in October, the Brazilian government fined JBS for purchasing cattle allegedly raised illegally in the Amazon rainforest.

Despite the controversies, JBS's U.S. listing marks a significant milestone for the company. The move allows JBS to tap into the U.S. capital markets, providing access to a larger pool of investors and potentially lowering its cost of capital. The listing also enhances the company's visibility and credibility in the global market, which could attract more business opportunities and partnerships. However, the company's past scandals and ongoing regulatory issues may continue to pose challenges and risks for its future operations and growth.