Brazil’s JBS launches BDR trading in Brazil ahead of NYSE debut

JBS started trading this Monday (9) its Brazilian Depositary Receipts (BDRs), B3 share index, as a part of its dual listing process.

In Brasília, by early afternoon, the JBSS32 BDRs were up 1.02%, at R$ 78.86.

According to local media InfoMoney, this change is linked to the corporate restructuring finalised yesterday, when JBS shares were merged into JBS Participações.

JBS’s common shares initially traded under JBSS3 have ceased to be traded on B3, as a result of the aforementioned transition.

Rather, Brazilian investors are now able to access the company by means of BDRs (bônus de subscrição), which are rooted in shares issued by JBS NV, a company currently based in the Netherlands.

The final JBS NV shares will list on the New York Stock Exchange (NYSE) on Wednesday (June 12) with the symbol “JBS.”

Access and conversion period for investors

Despite the structural transformation, trading in JBSS32 BDRs allows Brazilian investors to maintain exposure to JBS’s stock.

The corporation has also announced a fee-free conversion window for BDRs to NYSE-listed shares.

This period, which runs from June 11 to July 11, aims to smooth investor transitions and allow integration with the company’s foreign activities.

The Brazilian Securities and Exchange Commission (CVM) approved the listing of BDRs on May 30.

The procedure ensures that JBS meets local regulatory norms while also enabling its new cross-border setup.

The new structure is part of a larger drive to improve governance, increase capital market access, and more appropriately reflect the company’s global presence.

Global strategy aligned with operations

JBS is one of the largest food producers in the world, and it operates over 250 facilities across 17 countries.

It has over 300,000 clients in the meat sector.

With a corporate governance structure better aligned to its many international operations, the company is doing away with its existing legal and listing structure.

The entity would have BDRs on B3 and class A shares on the NYSE, in what would be a dual listing with the intent of increasing the depth and liquidity of capital markets open to JBS and raising its visibility worldwide.

As such, the company believes this new structure will provide greater strategic flexibility to execute its business growth strategy and allocate its capital more efficiently.

BDRs are a key investment channel

Following the delisting of JBSS3 shares, BDRs are currently the primary vehicle for Brazilian investors looking to invest in JBS.

These instruments replicate the performance of the company’s worldwide shares, and dividends will be disbursed to BDR holders following existing procedures.

BDRs are often employed by global corporations to maintain a presence in Brazil while avoiding a full local listing.

They provide a simple option for local investors to have access to multinational companies using the B3 exchange’s familiar infrastructure.

Market perspective and outlook

Market analysts perceive the transition positively. Genial Investimentos, for example, sees the restructuring as a chance for possible value gains and suggests acquiring JBS BDRs.

The firm believes that the company’s visibility and access to funding will improve from its exposure to U.S. markets.

As the NYSE listing approaches, the focus will shift to how JBS manages investor interest in a new regulatory and financial environment.

The success of its dual listing could serve as a model for other Brazilian companies looking to expand their investor base and better interact with global markets.

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