Jose Cuervo is a Mexican brand of tequila that managed to become recognized in the entire world. Starting with 2012, the company began selling 3.5 million cases of high spirits in the U.S. alone within a year. Moreover, it is the fifth tequila producer in the world according to the volume of merchandise. As of today, Jose Cuervo managed to sell $790 million of shares which was the biggest IPO transaction in Mexico from the last three years.
On Wednesday, Jose Cuervo managed to defy all odds and score a valuation above the maximum predicted of high end. Thus, the high spirits maker obtained 34 pesos per share, which means $1.65. This led to an accumulated total of $791 million. This event signaled the first Mexican IPO instated since Donald Trump won the presidential elections in the United States of America.
While the details are still confidential, the new milestone is the first Mexican victory on the economic market for three years now. In October 2013, Grupo Lala which is a Mexican dairy organization founded in 1950, managed to raise $938 million in the first stage only. Since then, Latin America was halted from its progression by social and political struggles. This explains why the IPO has been inactive for so long in this country.
Different sources appraise the fact that investors decided their orders for the tequila maker that were eight times in excess of the usual offering size. This turn of events empowers the Mexican community to aspire to better trading relationships between U.S. and Mexico. The success Jose Cuervo enjoys gives hope that the country will manage to escape from recent economic uncertainty.
In light of this event, there are several other Mexican companies that struggle for prosperity. For instance, Fibra Resort suspended the IPO in 2016 only to resume it in a short while. Cementos de Chihuahua is programmed next Thursday for a follow-on equity offering at a value of $392.2 million.
The high spirits company has been fighting for IPO for 11 years now. Juan Domingo Beckmann, the Chief Executive Officer of Jose Cuervo, has been trying to list the stocks since 2006. The company was ready to sell its shares since September. However, due to the victory of Donald Trump regarding the presidential seat, the tequila maker suspended its operation so as not to be affected by inopportune times. Nonetheless, the recent victory allowed the company to plan itstransformation into a global high spirits company.
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