SÃO PAULO, BRAZIL – JBS SA raised $1.04 billion in a stock offering earlier this week, which is more than initially anticipated, and possibly provides a sign of renewed demand for follow-on share sales in the country, according to Reuters. The company sold 230 million new shares at a price of 8 reais (US$4.50) each.
Originally, the company planned to sell 200 million new shares and underwriters had the option to sell 70 million in additional stock to meet demand.
JBS SA is satisfying a market in Brazil that has shown more interest for follow-on stock sales than for initial public offerings.
In recent years, JBS, has greatly grown in size through a number of acquisitions in the U.S., Europe and Asia to become the world's largest beef exporter, the second-largest global poultry company and the third-largest U.S. pork processor.
JBS intends to use two-thirds of the proceeds from the stock offering to expand its direct sales business, including acquisitions of distribution centers and delivery trucks. The remaining funds will be set aside for working capital.