JBS, a prominent food company based in Brazil, has announced its intention to list company stock on both the São Paulo Stock Exchange (B3) and the New York Stock Exchange. Currently trading on the OTC under the symbol JBSAY, with a market capitalization of $8 billion, JBS aims to utilize Brazilian depositary receipts (BDRs) for trading on the B3 exchange. These BDRs will be backed by Class A shares on the NYSE.
The strategic decision to pursue a dual listing is expected to enhance JBS's capacity for diversification and facilitate growth into new markets for branded and value-added food products. Moreover, the company anticipates a reduction in its cost of capital and an increase in shareholder returns as a result.
Gilberto Tomazoni, JBS Global CEO, expressed his enthusiasm for the dual listing strategy. However, the company has not yet provided a specific timetable for when this listing will occur.
Despite a decline of 15.7% in its stock value during 2023 OTC trading, in comparison to a 15.6% increase by the S&P 500, JBS remains confident in its future prospects as it pursues this dual listing opportunity.
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