Pallet maker Woodcats seeks $750 million
Published:Wednesday | January 28, 2026 | 12:07 AM
Woodcats International Ltd., a wooden pallet manufacturer, plans to raise up to $750 million through an initial public offering (IPO) that would value the company at $2.15 billion.
“Since our inception, Woodcats has grown into a national manufacturing partner of scale, now producing and servicing more than 300,000 pallets annually and supporting some of Jamaica’s largest industrial clients,” said Peter Douglas, general manager, in the prospectus.
Douglas, an accountant with more than 30 years of finance and manufacturing experience, joined Woodcats in 2004 and became general manager in 2007. The company operates two facilities employing more than 90 people, maintaining production uptime above 95 per cent.
“The next phase of growth demands new tools, greater scale, and sharper precision,” stated the prospectus.
NCB Capital Markets serves as the lead broker and Baker Tilly its auditor. Legal advisors Patterson Mair Hamilton. The company will use $187.5 million from its share of proceeds for capital expenditure including head resaws, forklifts and pallet-production machinery. Another $165.5 million will go toward working capital. Derrimon Trading will receive $353 million from selling shares, net of transaction costs.
The offering opens February 2 and closes February 20, with shares targeted for listing on the Jamaica Stock Exchange’s Junior Market. If fully subscribed, Derrimon Trading’s stake would fall to 49.4 per cent from 81 per cent currently. Other major shareholders include DTL Employee & Shareholder Nominee Trust with 7.4 per cent, Princeman Ltd. at 6.6 per cent and Doug Ridge Holdings at 1.7 per cent.
Directors Derrick Cotterell and Ian Kelly each hold 4.0 per cent of shares through Princeman Holdings.
Of the 2.385 billion units in the offering some 11 per cent or 283.3 million shares are available to the general public, with the remainder reserved for employees, key partners and strategic investors which takes the combined figure above the 20 per cent threshold for listing.
The $2.15 billion valuation upon a fully subscribed offering would more than triple the company’s book value of $633.1 million in shareholders’ capital as of September 2025.
Since 2021, Woodcats has grown its capital at a pace that would double its book value in under five years. Net profit has also surged since the pandemic, rising from $17 million in 2020 to $136 million in 2024—a near-eightfold increase over four years driven by procurement efficiencies and margin expansion.
The company recycles wood by-products into mulch and other resale goods. It also provides certified heat treatment for wooden pallets and crates meeting international phytosanitary standards.
Woodcats reported nine months to September 2025 revenue of $840.4 million, up 3.8 per cent from the prior-year period. Margins hovered at 35.7 per cent resulting in $299.8 million gross profit. Net profit grew to $95.1 million from $90.6 million a year earlier.
The company proposes paying annual dividends of at least 25 per cent of net profits if listed, though past performance doesn’t guarantee future payouts.
Jamaica’s pallet and packaging sector supports agriculture, manufacturing and export industries. Woodcats competes in a market where industrial clients require consistent supply and quality standards for shipping and storage operations.