Meatpacking giant JBS has secured a key shareholder nod to go ahead with a long-debated plan to list its shares in both the United States and Brazil. The move, which aims to elevate the company’s global market stature, comes after years of delays tied to corporate scandals and ESG concerns. The vote overcame early signs of pushback, particularly from minority investors wary of a structure that could dilute their influence.
The dual listing will see JBS delist from the São Paulo Stock Exchange on June 6, with shares then trading on the New York Stock Exchange starting June 12. In Brazil, the firm will maintain a presence through Brazilian Depositary Receipts (BDRs). The company’s CFO, Guilherme Cavalcanti, said this strategic shift is part of a broader bid to join heavyweight US indices like the S&P 500 and the Russell, potentially boosting liquidity and visibility.
Market’s reaction
While the decision sparked a brief 2% rally in JBS shares, those gains were short-lived, with the stock closing down 1.4% on the day of the announcement (May 23). Still, some analysts see long-term upside. Genial Investiments suggested JBS’s valuation could climb significantly, bringing it closer to US rivals like Tyson Foods, with a potential 29% share price appreciation if the company hits a valuation of 7.5 times EBITDA.
The other side
Yet the structure underpinning this dual listing isn’t without controversy. JBS will adopt a dual-class share system through a Dutch-based entity, issuing publicly traded Class A shares alongside non-traded Class B shares that carry 10 times the voting power. That setup raised red flags with some proxy advisors who fear it entrenches control in the hands of major shareholders, notably the Batista brothers, long shadowed by past corruption probes.
Despite the governance concerns and climate accountability questions still dogging JBS, the shareholder approval marks a milestone for the company’s global ambitions. The recent exit of Brazil’s state development bank BNDESPar from JBS’s shareholder roster is expected to help boost free float and index eligibility. But the real test lies ahead: convincing Wall Street and US regulators that the company has truly turned a page.
