Capítulo 6: If these companies became successful with the Stock Exchange, why wouldn´t yours?

Destacada con los logos de FAcebook, Palacio de Hierro, PR1ME Capital, José Cuervo

By: Ximena Peinado  

You probably read the title and thought: “because others earn more than mine?”. But, guess what? This is not an obstacle or an excuse at all. Companies like Amazon or Facebook achieved their success by selling their shares on the stock market .

We know that the case of Google and the other two companies mentioned could be considered an exception for the innovations they offered to the market. However, this is not a matter of luck

The stock market in Mexico

The case of José Cuervo is the most accurate. In February 2017, the largest tequila producer in the world raised more than 18 billion pesos in one week by placing its shares on the Mexican Stock Exchange.

The company initially placed 548.1 million shares, of which 172 thousand 126 million were acquired by Mexicans and the rest, 375 thousand 979 million by foreigners.

Their success was a consequence of the over demand in their stocks. The guidance they received from two of the most known brokerage houses: Morgan Stanley and JP Morgan.

Graphic becle price behavior jose cuervo PR1ME Capital Capítulo 6: If these companies became successful with the Stock Exchange, why wouldn´t yours?
Eduardo Garza

A company that started with a small bakery in Mexico City called El Molino in the center of Mexico City. Bimbo was founded officially in 1945 in the capital of Mexico; the next year the company expanded to Puebla; in the 50s they opened their factory in Guadalajara and Monterrey.

The next big step Bimbo made was when in 1980 they made their company go public and sold their stocks. At first, they sold 15% of their company. Its value then multiplied and its international expansion started in the US in 1998. Then came Brazil in 2001 and Spain and Portugal in 2011. 

Palacio de Hierro was  one of the pioneers in the Mexican Stock Exchange, to which it was registered in 1990. This company, which belongs to  to Alberto Baillère, nowadays amounts to more than 18 billion dollars.

As a last example, we have BeGrand, a company focused on the transformation of the urban contour and whose main objective is to develop comfortable, quality coexistence spaces in harmony with the environment.

BeGrand is a company that has used the different instruments of the Mexican Stock Exchange in its favor. In February 2018, the company obtained a loan for 1.5 billion pesos over 3 years, with which it could pay previously acquired credits. In the same year, in the month of August, they returned to the market with a Certificate of Development Capital (CKD) with which they obtained four billion pesos to continue their projects.

Entrepreneurs and investors

In addition to this, not only do the companies themselves benefit from this, and the opportunity for profit does not end with just selling shares. An entrepreneur or an investor can also increase the value of his person both physically and morally through the purchase of shares. Men who serve as a clear example are Carlos Slim, Roberto Hernández and Alfredo Harp.

Carlos Slim began investing in the stock market in 1982 and in 1984 he created the Inbursa brokerage house and became one of the largest investors in the BMV. Slim, who belongs to one of the richest men in the world, decided to invest in times of crisis in stocks.

Today, his companies concentrate about 40 percent of the BMV’s main index and his personal wealth, according to Bloomber, is up to $ 68 billion.

Roberto Hernández and his partner, Alfredo Harp, also took advantage of the stock market boom. In 1971 the two founded Actions and Values ​​(Accival by its acronym in Spanish). Through this institution, they led many Mexican companies to list on the stock market.

One of them was Grupo México, the conglomerate of mining and transport companies whose owner is Germán Larrea, another investor benefited by the stock market boom and privatizations. Roberto Hernández and Alfredo Harp, in addition to maintaining a relevant position in Citigroup, the global corporate from Banamex, have shares in many BMV companies, in addition to being part of a large part of some of the boards of directors of these.

Stock Market Instruments

As it has already been proven, the instruments of the Mexican Stock Exchange can potentiate both the growth of your company and your own income as an investor. These previous examples are only a few of the many that exist in our country, and globally speaking, they are only a small fraction of the total number of success stories that exist.

It is important to note that this process is not easy and must be done carefully, especially in legal matters. Therefore, in the next chapter we will detail the necessary legal framework that a company on the stock market needs.

Keep learning from PR1ME Capital

We have already talked about  how the Mexican financial system works , in addition to telling you everything you  need to know about listing . In addition to telling you   what the origins of the bag are .

We talked about that listing on the stock market can be in many ways, and we share with you some tools to achieve it .

Continue reading our new series on financial exchanges so you can learn from  PR1ME Capital .

Source: El Financiero, Expansión, Dinero en Imagen, Bolsa Mexicana de Valores

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