Jose Cuervo Said to Plan Mexico IPO for as Early as Feb. 8by
Tequila maker said to start formally marketing deal this week
A representative for Jose Cuervo didn’t immediately comment
Jose Cuervo, the world’s largest tequila maker, is pushing forward with plans for an initial public offering after delaying the share sale last year, according to a person with knowledge of the matter.
The company plans to start formally marketing the deal to investors with a multi-city roadshow this week and the offering may price as early as February 8, said the person, who asked not to be identified without authorization to speak publicly.
The most recent plans come amid a recovery in Mexico’s benchmark stock index, which has gained 2.7 percent this year. Jose Cuervo may benefit from the 15 percent decline in the peso since the U.S. ballot took place, which makes prices of Cuervo’s products more compelling in the U.S., according to Bloomberg Intelligence analyst Julie Chariell. The distiller gets about 60 percent of its sales volume from North America.
A representative for Jose Cuervo in the company’s investor-relations office didn’t immediately respond to an e-mail or phone call seeking comment.
The distiller put its offering on hold after after Donald Trump’s surprise victory in the U.S. upended financial markets in Latin America, raising concerns that Jose Cuervo would be seeking to sell shares at an inopportune time. The Mexico City-based distiller was targeting a sale of as much as $1 billion, a person with knowledge of the matter said at the time.