Smith Douglas Homes, a homebuilder in the southeastern US focused on single-family homes, announced terms for its IPO on Wednesday.
The Woodstock, GA-based company plans to raise $150 million by offering 7.7 million shares (17% synthetic secondary) at a price range of $18 to $21. At the midpoint of the proposed range, Smith Douglas Homes would command a fully diluted market value of $1.0 billion.
Smith Douglas Homes is engaged in the design, construction, and sale of single-family homes in the southeastern US, targeting communities with entry-level and empty-nest homebuyers. The company's goal is to become one of the most dominant homebuilders in the south and southeast, and intends to grow operations within its existing footprint as well as expand into new markets. During the year ended December 31, 2022, Smith Douglas closed 2,200 homes, representing a five-year CAGR of +16%, and grew revenue at a +26% CAGR over the same period.
Smith Douglas Homes was founded in 2008 and booked $771 million in revenue for the 12 months ended September 30, 2023. It plans to list on the NYSE under the symbol SDHC. J.P. Morgan, BofA Securities, RBC Capital Markets, Wells Fargo Securities, Nomura Securities, WR Securities, and Zelman Partners LLC are the joint bookrunners on the deal. It is expected to price during the week of January 8, 2024.
