Smith Douglas Homes’ stock rises in debut as first initial public offering of 2024
Smith Douglas Homes Corp., in its stock market debut as the first initial public offering of 2024, started trading on the New York Stock Exchange on Thursday.
The IPO from the home builder priced at the top of its $18-$21 range, in a sign of strength.
Smith Douglas Homes’ stock
SDHC,
first traded at $23.28 and recently changed hands at $23.80, for a rise of $2.80, or 13% over its $21 IPO price.
The IPO raised about $161 million for the company, with 7.69 million shares in the deal. Underwriters are offering an additional 1.15 million shares for proceeds of $30.5 million.
JPMorgan, BofA Securities, RBC Capital Markets and Wells Fargo Securities are the IPO’s joint book-running managers.
Atlanta-based Smith Douglas Homes is one of the country’s fastest-growing private residential builders, focusing primarily on entry-level and empty-nest homes in Southern metropolitan areas.
Smith Douglas Homes reported $93.5 million in net income and $547.3 million in revenue in the nine months ending Sept. 30, compared with net income of $99.14 million and revenue of $531.9 million in the year-ago period.
Smith Douglas Homes was founded in 2008 by Thomas L. Bradbury, the company’s executive chair. Bradbury was the founder of Colony Homes of Atlanta in 1975 and was chief executive of that company when it was sold to KB Home
KBH,
in 2003.
Mike Murphy contributed.
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