Atlantic Plumbing hits $500 million target in IPO

 

 


Atlantic Plumbing Limited, an Associate Company of Lumber Depot Limited, indicates that its IPO was oversubscribed by the general public.  The company offered new shares amounting to 20 per cent of its share capital on the Junior Market of the Jamaica Stock Exchange to raise $500 million.

The offer which opened February 27 and was scheduled to close March 13 — subject to early closure if oversubscribed — made available over 499 million ordinary shares at $1.00 each, with a minimum subscription of 1,000 shares.

A total of 399,999,800 shares were reserved for the lead broker, JMMB Securities Limited, key stakeholders and employees, while 100 million shares were made available to the general public..

Atlantic in its disclosure on the basis of allotment said that key partners and employee reserved share-applicants will be allotted 100 per cent of the amount applied for. Broker reserved share applicants will also be allotted 100 per cent of the amount applied for. However, the general pool public which was over-subscribed will see applicants receiving the first 100,000 shares applied for and 64.48 per cent of the balance of the amount applied for

Management indicates that the proceeds of this initial public offer will be used to reduce the debt and debt service costs of Atlantic and to support the overall growth of the business. The initiative will also reduce the income tax charge on the company and generally improve its business prospects. Associate company Lumber Depot intends to participate in the offering.

A focus on growth opportunities led to the acquisition by Lumber Depot of a 35 per cent interest in Atlantic Plumbing and Hardware Limited. This company is engaged in the supply of plumbing and hardware items to retail hardware establishments across Jamaica.

Management indicated on March 14, 2025, “Atlantic has a well-established position in this important market segment and will continue to focus directly on this business. Atlantic has performed generally in line with expectations and contributed $12.2 million to the year-to-date profit of the business.”

Subsequent to the acquisition of Lumber Depot’s interest, Atlantic relocated to a new and improved sales and warehousing facility on Marcus Garvey Drive and overhauled its information technology systems to strengthen its inventory control and service levels.

As an associated company of Lumber , representatives of Lumber Depot have been appointed to its board. These are directors: Jeffrey Hall C.D. (Chairman), Vikram Dhiman, Lisa Kong, Cmd. George Overton, Hon. Paul B Scott O.J., Melanie Subratie (Maj. Ret’d) Noel Dawes (Managing).

Photo: Paul B. Scott, Chairman of Atlantic Plumbing

Caribbean Money Daily

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