Tequila Cuervo raises US$ 900 million in public offering
Tequila maker Jose Cuervo raised more than US$ 900 million during an initial public offering (IPO), Reuters reported citing company officials. The goal was to raise more than US$ 700 million.
Scheduled for last year, the company put the IPO on hold twice, as Donald Trump victory sent the peso currency to a series of record lows.
Trump threatened to slap hefty taxes on products imported from Mexico to pay for a border wall, as well as tear up a NAFTA, a joint trade deal with Mexico and Canada.
Investors sent the tequila maker orders about 8 times in excess of the offering size, according to sources familiar with the offering. Shares of the world’s biggest tequila maker sold for 34 pesos each, the high end of the projected range.
Cuervo’s offering makes it the country’s largest IPO in dollar terms since Grupo Lala raised an initial US$ 938 million in October of 2013.
Started by Jose Antonio de Cuervo in 1758 before Mexican independence from Spain, Cuervo holds 30 percent of the global tequila market.