CUERVO STRIKES GOLD

FEBRUARY WAS A very, very good month for the makers of Jose Cuervo Tequila. The initial public offering for the brand raised more than $9OO million, the company announced. Shares in Cuervo, which were priced at the top of the expected range at 34 pesos, jumped by more than 8 percent after markets opened in Mexico. The stock later pared some initial gains and was trading up by 4.9 percent at 35.7 pesos per share. Including the overallotment option, the IPO raised about 18.64 billion pesos (US $912.6 million), Cuervo said. With 3O percent of the global tequila market, the Cuervo business is controlled by Mexico’s Beckmann family, which will remain the majority shareholder of the company. Last year, the company put the IPO on hold twice amid various political concerns. Still, investors 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. Aranda, a subsidiary of Singapore state investor Temasek, said it would take a 2O percent stake in the listing, helping to put a floor under the IPO.