| MEXICO CITY
MEXICO CITY Feb 8 The initial public offering
for tequila maker Jose Cuervo is at least four times
oversubscribed, four sources said on Wednesday, pointing to a
high-end pricing for the first Mexican IPO since Donald Trump
won the U.S. presidency.
Two of the sources, who spoke on condition of anonymity,
said pricing of the 476.6 million share offer was expected to be
at the upper end of the 30 to 34 peso guidance range.
A 34 peso pricing, combined with a 15 percent "overallotment
option" could allow the oldest continuously-producing tequila
company to rake in upwards of $900 million.
The official pricing is due to be released later on
Wednesday. Jose Cuervo, which is also the world's biggest
tequila maker, could not immediately be reached for comment.
The company, officially known as Becle, put its IPO on hold
twice last year, as Trump's march to the White House gathered
strength, sending the peso currency to a series of record lows.
The real estate mogul has threatened to slap a hefty tax on
products Mexico sends to the United States to pay for a border
wall, as well as tear up a joint trade deal with Mexico.
U.S. protectionist measures against Mexico could hurt Jose
Cuervo, which generates 64 percent of its $1.165 billion in
sales from American and Canadian consumers.
But investors have expressed strong interest in the IPO,
citing Cuervo's strong dollar-based earnings and saying demand
for tequila is not heavily dependent on prices.
Started by Jose Antonio de Cuervo in 1758 before Mexican
independence from Spain, Cuervo says it is North America's
oldest continuous producer of spirits.
Boasting 30 percent of the global tequila market, the
business is now controlled by the Beckmann family, which will
remain the majority shareholder after the IPO.
Aranda, a subsidiary of Singapore state investor Temasek
Holdings Ltd, has said it will take a 20 percent stake
in the listing, helping to put a floor under the IPO.
Shares of the company should begin trading on Mexico's
bourse on Thursday.
($1 = 20.4540 Mexican pesos)
(Writing by Alexandra Alper; Editing by Bernard Orr)