Environmental activist groups including the Rainforest Action Network filed complaints with the U.S. Securities and Exchange Commission concerning the proposed listing of JBS S.A. on the New York Stock Exchange. A spokesperson for the activist group noted, “We request the FCC conduct a thorough investigation into the pattern of alarming and unacceptable corporate conduct by JBS before granting an IPO.” Mighty Earth a second opponent of the IPO has challenged the validity of the climate impact component of the prospectus.
JBS previously attempted an IPO in 2018. This was shelved following a scandal in which controlling shareholders Wesley and Josey Batista were accused of insider trading amid revelations of widescale corruption. Recently the Batista brothers were cleared of wrongdoing removing a potential obstacle to an IPO.
JBS S.A. has extensive investments in the U.S. in pork and beef packing. Involvement in chicken comprises a majority shareholding in Pilgrim’s Pride Corporation.
In response to negative publicity, JBS commented, “We are confident our dual listing proposal will create opportunities for our company, team members and shared communities and all stakeholders.” The spokesperson added, “The proposal accelerates our efforts to enhance corporate governance and transparency through adherence to SEC standards with the formation of a majority independent board.”
Environmentalist may not be the only opponents to the proposed IPO. It is anticipated that unions will file an objection given questionable labor practices during the COVID period and based on their growing militancy expressed as opposition to the Kroger-Albertsons transaction.