Cuervo to ‘reassess IPO in January’

Jose Cuervo has delayed its initial public offering (IPO) after discussions with investors and will reassess demand in January, media reports claim.

Jose Cuervo’s owners are considering an IPO, according to reports

The Mexican spirits producer first put IPO plans on ice in October citing, market uncertainty surrounding the US presidential election.

Donald Trump’s surprise victory cast further doubt on the planned floatation, which was expected to raise as much as US$1 billion.

Now Cuervo, the world’s largest Tequila producer, has postponed plans after “reaching out to investors to get a sense of demand”, reports Bloomberg.

According to Reuters sources, Jose Cuervo will reassess its IPO plans in January, “when the impact of Trump’s upcoming presidency may be easier to evaluate”.

The Mexican Stock Exchange has seen much volatility since the US presidential vote on 8 November. The MXX index has lost 7% of its value since the election, while the peso is still trading down around 11% from pre-election levels.

Market uncertainty has been fuelled by the president-elect’s campaign pledge to reform the North American Free Trade Agreement, and build a wall between the US and Mexico.

The Spirits Business has reached out to Jose Cuervo for comment.