MercoPress. South Atlantic News Agency

World’s largest meat processor applies for listing in New York market

JBS plans an initial public offering of 2 billion US dollars

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

Brazilian-based JBS SA 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 2 billion USD, 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 Sao 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 Sao Paolo Stock Exchange.