Source: Bob Moser, MEATINGPLACE, 5/15/14
 
A possible IPO first rumored in April for JBS Foods, the newest business unit of the world's largest beef and poultry processor, could become official as soon as the end of next week with an official filing request by JBS in Brazil, reported Valor Economico newspaper on Wednesday, citing anonymous sources. 

Reports surfaced last month that JBS was actively planning to release shares on the market for its JBS Foods unit that oversees poultry, pork and processed foods in Brazil, with a goal of raising BRL3 billion ($1.35 billion). The company responded publicly on April 14, saying no decision had been made on opening the capital of JBS Foods, but did not deny the rumor outright.

JBS has reportedly hired as many as nine banks to aid in the IPO operation, including Itau BBA, Bradesco BBI, BTG Pactual, Banco do Brasil and J.P. Morgan, among others. Some of the banks involved are also creditors of JBS, one source told the newspaper.

If the official request for an IPO is filed within the next week or so, it would allow new shares of JBS Foods to be released as soon as late June. However, the company wouldn't face a deadline, and could launch the offering whenever market conditions are most favorable. 

JBS will release the financial performance results of JBS Foods separately for the first time on Wednesday night in its first quarter financial report. The unit's annual revenues are expected to reach BRL12 billion ($5.4 billion), more than 10 percent of JBS' total net revenue of BRL93 billion ($42 billion) from 2013.

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