Sao Paulo, Brazil-based JBS SA has received approval to delay its JBS Foods initial public offering (IPO) for as little as a few weeks or up until next year. JBS and banks associated with the floatation expressed concerns that the upcoming elections may spark volatility and uncertainty on the part of investors. This is the third time since June that JBS SA, the world’s largest meatpacker has delayed its plans for its IPO through which it seeks to raise US$1.61 billion. After polls indicated Dilma Rousseff held a small lead in the lead up to Brazil’s presidential elections, the Bovespa stock index fell for the third time in four days and prospective JBS IPO buyers voiced concerns about risk perception, reduce global liquidity, and domestic recession as Rousseff’s opponent is considered more business-friendly. JBS has retained its securities application to file for an IPO and plans to list JBS Food, which accounted for almost 10% of JBS’ $40 billion in revenues in 2013, on the Sao Paulo Stock Exchange’s Novo Mercado which requires that a company list at least 25% of its shares.
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