JBS has said it wants spin off its international business through an IPO in the US, becoming the latest Brazilian firm to join a growing list of companies in talks for debut equity offering.
The proposed equity offering would also comprise its Brazilian poultry unit Seara Alimentos as well as the Netherlands-based JBS Foods International, JBS SA’s CEO Wesley Batista told investors on Monday
JBS SA’s shares responded well to the news, swelling to BRL10.95 ($3.18) in late morning trading, after opening Tuesday at BRL10.17.
JBS SA’s outstanding bonds would be placed under the new US-listed unit and proceeds from an IPO would pay down debt, Batista told investors.
In October, Ba2/BB+/BB+ rated JBS canceled a proposed reorganization to group some of its international operations under a new Ireland-based entity. Under the initial plans, its local operations were to be named JBS Brasil.
The cancelation came after BNDESPar, the private equity division of national development bank BNDES and a 20% shareholder in JBS, vetoed the meatpacker’s proposal.
At least four Brazilian equity offerings are poised to launch and price between this month and during Q1 next year, equity capital markets sources said. IPOs from Gafisa’s SA’s low income housing division Tenda is scheduled to price this month along with water company Sanepar’s proposed offering.
Car rental companies Unidas and Movida have also filed documentation for global IPOs, slated to price in Q1 next year.