JBS Value Hits Ceiling As It Moves Closer To U.S. Listing

Shares of Brazil’s JBS SA surged to their highest level in five years as the company moves closer to a long-anticipated stock listing in New York, following a deal with its second-largest shareholder, Bloomberg News reported.

JBS has previously stated that a New York Stock Exchange listing could raise its market value to $30 billion, up from its current $14 billion valuation. I Photo: JBS

The equity arm of Brazil’s state-owned lender BNDES, which owns nearly 21% of JBS, has agreed to abstain from voting on the listing plan at the company’s upcoming board meeting, removing a key obstacle to the U.S. listing, according to a regulatory filing.

The agreement was reached with J&F Investimentos SA, which controls the world’s largest meat producer.

As part of the deal, BNDESPar will receive up to 500 million Brazilian reais ($87.9 million) if JBS’s U.S. listing fails to generate the expected share price appreciation. While the companies did not disclose the specific strike price, they confirmed it must be reached in the second half of 2026.

“This removes a clear overhang for the U.S. listing,” Morgan Stanley analysts, including Ricardo L. Alves, wrote in a report.

The bank called the development “an important sign of commitment by the controllers” and suggested it indicated progress in the listing process. JBS shares jumped as much as 15% on the São Paulo exchange early Tuesday, marking the company’s biggest intraday gain since March 2020.

JBS has long argued that its valuation is artificially capped compared to competitors such as Tyson Foods Inc., Hormel Foods Corp., and its U.S. subsidiary Pilgrim’s Pride Corp. because it is not listed in the U.S. and therefore cannot be included in indices such as the Russell 2000 Index and the S&P 500.

The company has previously stated that a New York Stock Exchange listing could raise its market value to $30 billion, up from its current $14 billion valuation.