Cuervo To Push Ahead With IPO Next Month: ReportJanuary 23, 2017
Jose Cuervo is eyeing an initial public offering in Mexico as early as two weeks from now, Bloomberg reports, citing an unnamed source with knowledge of the matter. Cuervo, controlled by the Beckmann family, had previously put its planned public offering on hold owing to uncertainty in the market following the U.S. presidential election. The company has been planning to float about 15% of the company on the Mexican Stock Exchange, with the aim of raising around $1 billion to put toward M&A activity. The Mexican stock exchange has posted a gain of 2.7% so far in 2017.
According to Bloomberg, Cuervo will start marketing the IPO to investors in a multi-city roadshow this week, with the offering set to be priced as soon as February 8. The company is poised to benefit from a 15% decline in the Mexican peso since the election, a development which could boost exports to the U.S. According to Impact Databank, Jose Cuervo’s namesake brand, marketed by Cuervo subsidiary Proximo Spirits, grew 4.5% to 3.6 million cases in the U.S. last year. —Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.