JBS the Brazilian meatpacking giant experienced a 4% decline in its stock value during its first day on the New York Stock Exchange after its highly anticipated dual listing.
The company pursued dual listing between Sao Paulo and New York to increase investor participation and reduce its financing expenses despite generating half its revenue in the U.S. and employing more than 72,000 American workers. The U.S. listing of JBS would lead to enhanced regulatory oversight which the company implemented to address ongoing criticism about corruption and monopolistic practices and environmental misconduct.
The listing received shareholder approval during the previous month but encountered opposition from various stakeholders. The NYSE should reject JBS’s listing request because the company generates profits from Brazilian deforested land according to environmental group Mighty Earth.
JBS believes that increased investor participation from around the world will drive business expansion because it needs to access better financial markets to raise capital. The U.S. Securities and Exchange Commission granted approval for the listing during the previous month.
The company successfully listed on the NYSE but the unfavorable market response indicates investors remain skeptical about its environmental and governance practices.
