© Susana Gonzalez/Bloomberg
The biggest tequila distillery in the world, Jose Cuervo, made available 476.6 million shares at the Mexican Stock Market (BMV) on February 9th 2017. The gains are estimated at around $791 million with a price-per-share between $1.46 and $1.65, making it Mexico’s most important IPO since 2013.
Partner Luis A Nicolau from Ritch Mueller assisted by associate Leopoldo Fragoso represented numerous Mexican underwriters and initial buyer for the IPO of BECLE, Cuervo’s name on the BMV. According to the offering prospectus the IPO leaves controlling investors with an 86.7 percent stake in Cuervo and was oversubscribed eight times.
The operation had already been postponed twice due to President Trump’s proposal to increase taxes on goods imported from Mexico. The American market represents 64 percent of the company’s sales. This is the first IPO of a Mexican company since Trump’s inauguration, despite the uncertainty around the political tension between Mexico and the US the operation has already show an increased on the company’s shares on the stock market by 8.8 percent on the same Thursday.
Jose Cuervo is the biggest producer of tequila in the world and one of the twenty-biggest companies on Mexico’s stock market with a valuation of $6.3 billion. The company, which has been in business for 250 years represents more than 30 percent of the Tequila market with its 30 different brands.