Jose Cuervo IPO raises US$790mBy Annie Hayes
Mexican drinks group Jose Cuervo International has sold around US$790 million-worth of shares in an initial public offering, according to reports.
According to Bloomberg, the offering was about eight times oversubscribed, and was Mexico’s biggest equity offering in more than three years.
Shares sold for 34 pesos each – the top end of an estimate given in a recent investor presentation.
The pricing of the 476.6 million share offer means the company – the world’s biggest Tequila producer – raised at least 16.2 billion pesos (US$791 million).
The company put its IPO on hold twice last year due to market uncertainty surrounding the US presidential election.
At the end of January, US president Donald Trump announced plans to impose a 20% tax on imports from Mexico, including Tequila, as a row over who should pay for a proposed US$15 billion border wall between the two countries continues.
At the same time, Mexico’s Consejo Regulador del Tequila won the right to register ‘Tequila’ as a certification mark in the US following a legal battle with drinks group Luxco.