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Jose Cuervo reportedly holds back IPO plans

DBR Staff Writer Published 24 November 2016

Tequila giant Jose Cuervo has reportedly postponed its initial public offering in Mexico amid uncertain market conditions owing to the outcome of the US elections.

The decision to hold back the company's sale of its stock to investors follows Donald Trump’s surprise win in the presidential elections which is likely to result in possible changes in the North American Free Trade Agreement, as reported by the Reuters.

Jose Cuervo reportedly had plans to market its offering to investors in Mexico in late November but decided to wait as preliminary talks were said to be not converting into desired results.

Officially known as Becle, Jose Cuervo in September had filed with the Mexican bourse to yield anything between $500m to $1bn of capital.

It was reported in September that besides the Mexico IPO filing, Jose Cuervo could also go in for a private placement to US investors where interest in tequila market is shifting towards high-end agave brands.

Financial markets in Latin America have turned upside down after Trump’s win over Hillary Clinton in the recently held presidential elections.

The result raised concerns for the Mexican market, in particular for Jose Cuervo, which was timed to sell its shares at an otherwise inconvenient and uncertain time for investors.

Reuters has reported that Jose Cuervo could relook in to its IPO plans in January by the time Trump’s policy making plans and their impact on markets could become easier to assess.

Image: Jose Cuervo reportedly postpones IPO plans. Photo: courtesy of Thelmadatter and Wikipedia.