JBS has scheduled an extraordinary general meeting, in which shareholders will vote to have the company’s shares traded on the New York Stock Exchange, while also continuing to be traded on Brazil’s B3 stock exchange.
The vote will be conducted on May 23.
The JBS board scheduled the meeting after the U.S. Securities and Exchange Commission (SEC) approved the registration process. JBS has been working toward a dual listing since 2023.
“We believe this transaction will increase our visibility on the global stage, attract new investors and further strengthen our position as a global food leader,” said JBS Global CEO Gilberto Tomazoni.
Whether the Brazil-based JBS ultimately becomes listed in both the United States and Brazil will be entirely up to minority shareholders. In March, JBS announced that its two largest investors – J&F Investimentos and BNDESPar – signed an agreement that they will abstain from voting on the matter. Collectively, those two entities hold about 70% of JBS shares.
While JBS is headquartered in Brazil, it has a strong presence in the United States. It’s JBS USA subsidiary is a major producer of beef and pork in the U.S. JBS is also the majority shareholder of Pilgrim’s Pride Corporation (PPC), which is traded on the NASDAQ Stock Exchange and is the second largest poultry producer in the United States.
In addition to the Brazil and the United States, JBS operates in 15 other countries, and in every continent except Antarctica with more than 250 production facilities. It is the world’s largest poultry producer and 13th largest feed producer.
Opposition and skepticism
JBS’ proposed dual listing has not been without controversy, with multiple people and organizations alleging JBS has a history of corrupt business practices and poor environmental practices.
A special advocacy group called Ban the Batistas formed shortly after the dual listing was proposed. The group’s name derives from the Batista family. The company was founded by José Batista Sobrinho, his sons Wesley Batista and Joesley Batista are members of its board, and his grandson Wesley Batista Filho is the CEO of JBS USA.
Also, numerous members of the United States House of Representatives and United States Senate have spoken out against it, urging the SEC to heavily scrutinize the proposal.
Environmental groups like Mighty Earth and Rainforest Action Network have also voiced opposition to a dual listing.
Mighty Earth today issued a press release, expressing its disappointment in the SEC for approving an initial public offering on the NYSE.
“Given the company’s long rap sheet of illegal and corrupt conduct, it’s hard to see how the SEC could have confidence that JBS won’t deceive U.S. investors,” said Mighty Earth CEO Glenn Hurowitz. "The approval of JBS’ IPO shows this is no longer the independent SEC that has upheld honest practices on American markets for nearly a century. We hope the New York Stock Exchange isn’t as easy to corrupt and upholds its standards by keeping a company known for corruption and dishonesty out of the market.”
