Jose Cuervo IPO Update: Trump's Mexico Policy Could Keep Tequila Brand From Raising $700 Million

As soon as Feb. 8, fans of Mexico City-based Jose Cuervo will not only be able to drink its popular tequila, but own a piece of the company, as well. Nearly 11 months after the biggest producer of tequila reportedly began approaching banks, the company hopes to raise more than $700 million at its initial public offering of 476.6 million shares—priced at between 30 and 34 pesos, or between $1.41 and $1.60 each—Reuters reported Wednesday.

Jose Cuervo, a 250-year-old company passed down through Mexico’s billionaire Beckmann family, delayed its attempt to go public in late November as a result of the surprise election of President Donald Trump. But as of Wednesday evening, the future looked brighter for Jose Cuervo—if only temporarily.

As Gerardo Copca, an analyst at the Mexican financial advisory firm MetAnalisis, told CNBC Wednesday, the timing might have to do with what appeared to be a more dialogue-based relationship between the U.S. and Mexico.

“The governments of Mexico and the United States are going to dedicate themselves to negotiation that creates confidence,” Copca said. “Mexico’s stock market has shown that recently.”

On the campaign trail, Trump’s comments on Jose Cuervo’s home country raised the likelihood of rocky relations with America’s southern neighbor. Upon announcing his candidacy, Trump labeled all immigrants from Mexico “rapists,” and later pledged to build a “big, beautiful wall” along the U.S.-Mexico border, and to “make Mexico pay for it.”

Conservative pundits like former House Speaker Newt Gingrich labeled the promise “a great campaign device,” a sign that Trump might soften his stance. That changed, however, when Trump began signing a slew of new laws during his first few days in office.

In a Wednesday executive order, Trump initiated construction of the 2,000-mile border wall. The action followed another executive order seeking to renegotiate the North American Free Trade Agreement, also known as NAFTA, which all but removed trade barriers between the U.S., Mexico and Canada upon its implementation in 1994.

Mexican President Enrique Pena Nieto said in a televised address to his country Wednesday that Mexico “will not pay for any wall.”