Jose Cuervo, the world's biggest tequila producer, has put its initial public offering on hold following the U.S. presidential election ofDonald Trump, which has weighed on Mexican stocks and currency, according to people familiar with the matter on Wednesday.
The valuation of many Mexican companies has been hit by Trump's surprise victory on Nov. 8, fueled by concern about the U.S. president-elect's campaign promises to renegotiate or scrap the North American Free Trade Agreement.
Jose Cuervo, known officially as Becle, had filed with the Mexican bourse in September for an IPO that sources had said could raise as much as $1 billion. It is not clear how long the delay will be, but one of the sources noted that if the IPO were to take place after February, the company would need to update its prospectus for investors with new earning figures, potentially causing more delays.
The valuation of many Mexican companies has been hit by Trump's surprise victory on Nov. 8, fueled by concern about the U.S. president-elect's campaign promises to renegotiate or scrap the North American Free Trade Agreement.
Jose Cuervo, known officially as Becle, had filed with the Mexican bourse in September for an IPO that sources had said could raise as much as $1 billion. It is not clear how long the delay will be, but one of the sources noted that if the IPO were to take place after February, the company would need to update its prospectus for investors with new earning figures, potentially causing more delays.