Minerva S.A. Price & Performance (MRVSY)

Minerva, South America’s leading beef exporter, has proposed a R$2 billion capital increase, with a shareholder vote set for April 29. The deeply discounted share offer aims to reduce debt after major acquisitions but has sparked a selloff, reflecting investor concerns over dilution and recurring capital raises.123

Minerva’s plan to issue nearly 387 million new shares at a 20% discount sent shares falling on Brazil’s B3 exchange. The capital raise, backed by key shareholders, is designed to cut leverage after a year marked by losses and debt growth, but analysts warn of significant dilution for non-participants.234

While Minerva’s capital increase could lower its leverage ratio and improve balance sheet flexibility, analysts are divided. Some see the move as vital for financial stability, while others express concern over persistent reliance on equity raises, signaling deeper structural challenges for the company.421