JBS Debuts on New York Stock Exchange at $13.65 Amid Scrutiny Over Past Scandals

Brazilian meatpacking giant JBS began trading on the New York Stock Exchange on Friday under the ticker “JBS,” with its shares opening at $13.65. The direct listing gives the company a valuation of roughly $30 billion, surpassing US competitor Tyson Foods, which has a market cap of about $19.8 billion.

The long-anticipated US debut comes after JBS delisted its shares from Brazil’s São Paulo Stock Exchange last week as part of a restructuring strategy. The company will maintain a presence in Brazil through Brazilian Depositary Receipts (BDRs), while its primary listing now shifts to the United States.

JBS, founded over 70 years ago as a family-run slaughterhouse, has grown into the world’s largest meat processing company. In 2024, it reported $77.2 billion in revenue and $2 billion in net income, driven largely by its North American operations, which now account for more than half of total sales. The company employs approximately 280,000 people globally and holds a controlling interest in US poultry company Pilgrim’s Pride.

Despite its business success, JBS arrives on US markets with a history of controversy. Its parent company, J&F Investimentos—run by the Batista family—admitted in 2017 to paying roughly $150 million in bribes to Brazilian officials to secure favorable loans. The resulting fallout led to multibillion-dollar fines and the temporary imprisonment of brothers Joesley and Wesley Batista, who later returned to JBS’s board after being acquitted of insider trading charges.

The company has also faced criticism from environmental groups and lawmakers in both Brazil and the US for allegedly sourcing cattle from illegally deforested areas in the Amazon, allegations JBS denies. In October, Brazilian regulators fined the company over such concerns.

The US listing effort faced political resistance. In 2023, a bipartisan group of US senators urged the Securities and Exchange Commission (SEC) to closely scrutinize JBS’s plans, citing the company’s record on corruption and environmental issues. Shareholder advisory firms Glass Lewis and Institutional Shareholder Services also recommended voting against the listing, warning that the corporate structure could concentrate as much as 85% of voting power with J&F Investimentos.

Nonetheless, the SEC approved the listing in April, and JBS shareholders narrowly voted in favor of the restructuring plan in May. Company executives say the move will broaden JBS’s access to capital and align it more closely with its largest market, the United States.

Chief Executive Gilberto Tomazoni called the listing “a new chapter” for the company. Chief Financial Officer Guilherme Cavalcanti emphasized that JBS is not raising new capital through the listing and opted for a simplified process without a traditional IPO or roadshow.

“Why should I pay something to the bank, right, if I don’t need them?” Cavalcanti said in an interview.

The listing comes at a time of strong performance for JBS. The company rebounded from a loss in 2023 and beat Wall Street expectations in 2024. The firm plans to continue expanding its global footprint while emphasizing improvements in governance and sustainability.

With input from CNBC and the Wall Street Journal.