JBS plans to list shares on Wall Street and climbs more than 8% in Brazil

The actions of the Brazilian meat giant JBSone of the companies food largest in the world, climbed this Wednesday more than 8% on the Stock Exchange sao pauloafter announcing to the market a double listing proposal, listing its papers in Wall St.

“The double listing will create conditions for the valuation of the company, it will increase the ability to finance its growth at a lower cost, accelerating its diversification strategy”indicated in a statement Gilberto Tomazoni, global executive director of JBS, based in the capital of São Paulo and with operations in more than 20 countries.

The proposal, however, still must obtain the approval of the shareholders in an extraordinary general meeting, still without a date. And it must be approved by the stock market regulators of Brazil (CVM) and the United States (SEC).

The market received the news with enthusiasm, generating a rise in 8.76% at 19:45 GMT in the firm’s shares on the São Paulo Stock Exchange, which was operating in positive territory.

Trading on B3 (with Brazilian Depositary Receipts -BDRs- or certificates representing shares issued in other countries) and on Wall Street’s NYSE “will attract a broader base of investors with greater financial capacity,” Guilherme Cavalcanti said in the note. , JBS Global CFO.

Also “it will increase our equity issuance flexibility to finance opportunities (…) in addition to reducing the cost of capital”he added.

That, he expanded, will place the firm “on an equal footing” with its global competitors, without introducing changes in the operational structure.

Created 70 years ago in Brazil, JBS annually invoices 375,000 million reais (about USD 78,125 million at current exchange rates) with products that reach more than 190 countries, and employs 260,000 workers.

Source: AFP