Finally: Jose Cuervo Moves On
Steve’s breakdown: Well, despite Trump screwing with the Peso, Jose Cuervo is moving forward with their IPO. The company said proceeds will be used to fund growth, as well as broaden its portfolio. Two reason to get on their radar. Proximo handles distortion in the US.
JERSEY CITY, NJ & GUADALAJARA, Mexico: Jose Cuervo, the world’s biggest tequila producer, is planning a Feb. 8 pricing for its delayed initial public offering (IPO) in a bid to raise up to $1 billion, two sources familiar with the matter said on Monday.
The company put its IPO on hold twice last year after the election of U.S. President Donald Trump sent the peso to record lows and spurred fears of an economic slowdown in Latin America’s second largest economy.
One of the sources said the company is eyeing a price target of 30 to 34 pesos per share.
The new IPO date was first reported by Bloomberg earlier on Monday.
Cristobal Mariscal, general counsel and corporate affairs director for Jose Cuervo, declined to comment.
Trump, who took office last week, has promised to renegotiate or scrap the North American Free Trade Agreement, and has threatened to slap hefty taxes on companies shipping products from Mexico to U.S. markets.
In a prior IPO filing with regulators, Jose Cuervo warned the U.S. election could lead to renegotiation of trade deals, which could have a serious impact on its business.
Started by Jose Antonio de Cuervo in the late 1700s before Mexican independence from Spain, Jose Cuervo says it is North America’s oldest continuous producer of spirits.
With origins in the picturesque town of Tequila in Jalisco state, the business is now controlled by the Beckmann family, which will remain the majority shareholder after the IPO.
The company has said proceeds from the IPO will be used to fund growth, as well as broaden its portfolio.