Jose Cuervo benefited from investors' strong interest in its stock. The company finally came through with its initial public offering after the plan has been delayed twice.
CNBC reported that Jose Cuervo managed to sell its shares to the public at 34 pesos apiece. All in all, the tequila maker secured $900 million of additional capital from going public.
The price per share of Jose Cuervo was higher than expected, so it can be said that the public offering of the tequila maker has been a success. The company is the first one to go public right after Donald Trump took the seat to become the president of the United States.
The company's IPO plans have been derailed twice because of Trump, Fortune reported. Trump has been threatening to put large taxes on imported products especially those that are from Mexico. The president has been ranting about the unfairness of trade agreements to the United States.
Jose Cuervo is one of the oldest producers of spirits in the world and has one of the largest market shares in the tequila sector at more than 35% around the world. The company, which has been formed by Jose Antonio de Cuervo,s has been making tequila since 1758.
After the IPO, Mexico's Beckmann family continues to be the main shareholder of Jose Cuervo. One of the large shareholders in the tequila maker is a subsidiary of Temasek, an investor based in Singapore. Aranda promised to buy 20% stake of the tequila maker.
The Singapore-based investor appears enthusiastic about the prospect of partnering with Jose Cuervo. Lorenzo Gonzalez, managing director for Mexico & Andean Region at Temasek, said the company recognized the importance of Mexico. The company's recently bought stake in Jose Cuervo may be part of its goal to expand across industries worldwide.
In another news in the food and drinks industry, Jobs & Hire previously reported that Krispy Kreme is expanding in the United States.