JBS (JBSS3) advances almost 7% after sec approve double listing; What do analysts say?

The council of JBS (JBSS3) approved the summons of shareholders to Extraordinary General Meeting (AGE) on May 23, at 10am, to discuss the double listing plan on the New York Stock Exchange (Nyse). JBS’s request was approved by SECregulator of the US capital market. Around 11:46 am, shares climbed 6.99%

For the BTG Pactualthe approval of minority shareholders – which hold about 30% of the actions in circulation – is the last big step before the US listing. The bank explains that JBS SA will be unrained and JBS NV, headquartered in the Netherlands, will be listed, becoming the only shareholder of JBS SA, with actions traded on NYSE and BDRS on B3.

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Thus, A JBS NV will have two classes of action (A and B) with the same economic rights, but class B shares will have 10 times the vote of class A, and only class A shares will be publicly negotiated.

All shareholders may request the conversion of their class A shares to class B until December 2026, with a limit of 55% (except for controllers).

What changes with the double listing of JBS?

For BTG analysts, although it seems early to say this, in addition to the agreement enables negotiation to higher multiples, US listing and structure with different action classes will give JBS an unprecedented power to finance growth.

“The ability to issue new actions without compromising the control of majority shareholders, coupled with a more valued capital, will allow the company to aim much more ambitious goals,” says Thiago Duarte, Guilherme Guttila and Gustavo Fabris.

“We admit that we were skeptical about the idea that a simple ‘change of zip’ could unlock as much value and JBS project. But it seems to be wrong. The initial reaction since the announcement of the agreement between J&F and BNDES shows the opposite, with JBS actions rising about 36% since then.”

According to XP Investmentsthe double listing is positive since:

1. JBS negotiates with significant discount against pairs (they estimate a gap 30-40% valuation for Tyson;
2. Double listing should structurally decrease the company’s cost of capital;
3. The process should further strengthen governance;
4. The factors mentioned should expand investment and growth capacity. “Even with JBS bringing today with valuation At reasonable levels – 5.3xe 5.6x EV/EBITDA and 6.3% and 4.3% FCF Yield for 2025 and 2026, respectively – we expect a strong positive reaction of actions on Wednesday’s trading session. ”

The vision of Agora and Bank of America

To Agora Investmentsthe event is critical to risk reduction, as after BNDES recently announced its abstention, SEC approval was the main obstacle to the listing.

“Despite the recent rise, JBS shares would still have to climb 37% to close the gap in terms of EV/EBITDA multiple in relation to its subsidiary PPC and would have to double to completely closer the gap of valuation Regarding Tyson Foods’ actions, ”explain Henrique Brustolin and Ricardo Rosalen, who reiterate the action as the main recommendation in the food and beverage sector.

In the evaluation of Bank of America, The US listing can unlock significant valuation potential for JBS, as most of the business is outside Brazil (75% of revenue in 2025) and the action is negotiated with a 20% discount compared to Pilgrim’s Pride and 40% over Tyson Foods, with a multiple of 5.0x EV/EBITDA 2025. For them, the listing can be completed on June 9.

“The planned listing can lead to a reduction in capital cost and, with the structure of stocks in two classes ensuring greater voting power to controllers, JBS will be able to use actions such as currency for future acquisitions – which is aligned with its growth strategy.”