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Brazil’s JBS Files for US$ 2 Billion Initial Public Offering in the US

JBS, IPO, Wall Street Brazil-based JBS SA, the world's largest meat processor, filed for an initial public offering of up to 2 billion US dollars on Wednesday for its United States unit, making it the largest planned offering in the US IPO pipeline.

JBS has been expanding at a rapid pace in recent years by acquiring other beef processors. In 2008, JBS SA bought a 50% stake in Italy's Inalca, and took over Smithfield Foods Inc beef business and Australia's Tasman Group.

JBS USA, made up of its US and Australian plants, had sales of 15.4 billion USD in 2008, according to a prospectus filed with the US Securities and Exchange Commission. That tally accounted for about 78% of JBS SA gross revenue for the first quarter of 2009, according to the filing.

JBS USA's prospectus did not indicate an expected timing for the deal's pricing but if the IPO raises US$ 2 billion, it will be the largest US IPO since credit card operator Visa's 19 billion USD IPO in March 2008.

JBS USA said it plans to use the IPO's proceeds for "substantial investments in order to significantly expand our direct distribution."

In March 2007, JBS went public on the São Paulo Stock Exchange. Only four months later it bought 100% of US based Swift Foods Co, becoming the world's largest meat-packing company in terms of slaughter capacity.

JBS USA has applied to list on the New York Stock Exchange under the symbol "JBS" and will also list on the São Paulo Stock Exchange.

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