Atlantic Hardware and Plumbing Company Limited, a major distributor of construction and home improvement supplies, is gearing up for a transformative year as it seeks to raise $500 million through an initial public offering (IPO) on the Jamaica Stock Exchange (JSE). The company plans to list on the Junior Market, positioning itself for accelerated growth and expansion amid a rapidly evolving construction sector.
With a valuation of $1.95 billion, Atlantic Hardware’s IPO opens on February 27 and is set to close on March 13, barring early closure due to oversubscription. A total of 499 million ordinary shares are up for grabs at a price of $1.00 each, with the general public having access to 100 million shares, while the remainder is reserved for key stakeholders, including lead broker JMMB Securities Limited.
CEO Deanall Barnes emphasized the company’s commitment to strengthening its market position and operational efficiency. “We are focused on streamlining our operations and expanding our product offerings to better serve our customers and partners,” he stated.
A significant portion of the IPO proceeds—approximately $469.99 million after expenses—will be allocated to debt repayment. This includes a $300-million bond maturing in 2025 and additional loan settlements totaling over $56 million.
Since its acquisition by Construct Group Limited in March last year, Atlantic Hardware has undergone a strategic overhaul. The company relocated its operations to a centralized facility on Marcus Garvey Drive, a move aimed at enhancing logistics and customer service while reducing costs. This transition is expected to save the company between $15 million and $18 million annually.
Beyond its physical expansion, Atlantic Hardware is sharpening its focus on large-scale projects. The company has launched a dedicated division to serve major developers and government projects, including hotel construction and National Housing Trust initiatives. Additionally, partnerships with other national distributors are being formed to ensure supply chain resilience.
Currently distributing over 2,400 products to more than 1,000 customers, Atlantic Hardware is exploring opportunities to diversify its portfolio. “We are actively looking at new product lines that align with our core business and provide additional revenue streams,” Barnes hinted.
Despite recent contractions in the construction sector, Atlantic Hardware remains optimistic about sustained growth. In its last fiscal year, the company recorded revenues of $1.4 billion and a net profit of $105 million. Looking ahead, Barnes expects continued double-digit growth, driven by enhanced operational efficiencies and customer engagement strategies.
With the anticipated JSE listing, Atlantic Hardware is set to benefit from tax incentives, including a five-year corporate income tax holiday followed by reduced tax rates. The company also plans to distribute up to 40% of its net profits as dividends annually, reinforcing its commitment to shareholder value.
As Atlantic Hardware embarks on this new chapter, the IPO marks a pivotal step in its journey toward becoming a dominant force in Jamaica’s construction and hardware distribution sector.
