Tequila producer Jose Cuervo files for IPO in Mexico
Tequila giant Jose Cuervo has filed for an initial public offering (IPO) on the Mexico stock exchange, with plans to raise about $1bn.
The company revealed that the stock sale will be handled on its behalf by the local units of Morgan Stanley, JP Morgan Chase & Co and Banco Santander and GBM Grupo Bursatil Mexicano.
In addition to the Mexico bourse flotation, Jose Cuervo also has plans for a private placement to investors in the US where the tequila market is tilting towards high-end agave brands, as reported by Reuters.
The tequila distiller is likely to generate investor interest ahead of vodka in the US market.
The tequila maker would use the funds raised from the subsequent IPO listing for its organic and external growth besides expanding its portfolio.
In its IPO filing, Jose Cuervo claimed to have sales revenue of approximately 20bn pesos ($1.02bn) in 2015 while profiting 5.3 billion pesos ($0.27bn). It also said that its revenue it the first half of this year has been 12.2bn pesos ($0.6bn).
Four years ago, drinks giant Diageo failed in an attempt to acquire Jose Cuervo which was then valued at around $3bn.
The tequila producer is officially known as Becle and is controlled by the Beckmann family.