Cuervo IPO Raises $790 Million: ReportFebruary 9, 2017
Casa Cuervo is toasting a strong response to its initial public offering on the Mexican stock exchange, with the company reportedly raising about $790 million from investors for a combined 13% stake. While details of the IPO’s results haven’t been released, Bloomberg cited unnamed sources with knowledge of the matter who said the public offering—priced at 34 pesos ($1.66) a share—was eight times oversubscribed, as investors brushed off concerns about a potential border tax in the U.S. to focus on Cuervo’s growth potential in the thriving Tequila market, and its plan to acquire additional premium spirits brands with funds from the offer. Tequila volume rose by 6.5% to 15.8 million cases in the U.S. in 2016, according to Impact Databank estimates. Jose Cuervo’s U.S. volume grew by 4.5% to 3.6 million cases last year, making it the market’s 13th-largest spirits brand. —Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.