José Cuervo Goes Public
"Arriba, abajo, al centro y adentro". In the headquarters of José Cuervo, the well-known Mexican tequila brand, are probably celebrating in style that the company went public.
The initial public offering for Mexico's Jose Cuervo raised more than $900 million, the company said on Thursday, as the world's biggest tequila maker launched the first IPO in the country since Donald Trump won the U.S. presidency in November.
Shares in Cuervo, which were priced at the top of the expected range at 34 pesos, jumped by more than 8 percent after markets opened in Mexico, reported Reuters.
With 30 percent of the global tequila market, the Cuervo business is controlled by Mexico's Beckmann family, which will remain the majority shareholder of the company. Started by Jose Antonio de Cuervo in 1758 before Mexican independence from Spain, Cuervo says it is North America's oldest continuous producer of spirits.
Last year, the company put the IPO on hold twice, as Trump's march to the White House gathered strength, sending the peso currency to a series of record lows. Trump has also threatened to increase taxes on products imported from Mexico in the US and to take other protectionist measures against his southern neighbor.
U.S. protectionist measures against Mexico could hurt Jose Cuervo, which generates 64% of its $1.165 billion in sales from American and Canadian consumers, reported Fortune magazine.