Homebuilder Raises $162 Million At Top Of Range In First Notable U.S. IPO Of 2024
In a listing that could help pry open the window for other IPOs, the Georgia-based homebuilder sold about 7.7 million shares Wednesday for $21 each.
(Bloomberg) -- Smith Douglas Homes Corp. priced the first significant US initial public offering at the top of the marketed range to raise about $162 million.
In a listing that could help pry open the window for other IPOs, the Georgia-based homebuilder sold about 7.7 million shares Wednesday for $21 each, according to a statement confirming an earlier report by Bloomberg News. Smith Douglas Homes had marketed 7.7 million shares for $18 to $21.
At $21 a share, Smith Douglas Homes has a market value of about $1 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.
Dozens of IPO candidates are watching closely for a sign of a listings rebound after a two-year slump. The only other IPO on a US exchange this year was Tuesday’s $12 million offering by advisory firm Roma Green Finance Ltd.
The plans of many would-be public companies stalled after a quartet of prominent offerings led by semiconductor designer Arm Holdings Plc’s $5.23 billion IPO in September failed to deliver the results sought by investors.
Listings are pending for more than 180 companies that have filed for IPOs in the past year. This month, Wilson tennis racket maker Amer Sports Inc. and KKR & Co.-backed BrightSpring Health Services Inc. submitted their filings. Amer Sports is targeting more than $1 billion and could be valued at as much as $10 billion, while BrightSpring had been planning to raise about $1 billion in its IPO, Bloomberg News has reported.
Smith Douglas Homes, based in Woodstock, Georgia, had home-closing revenue of almost $595 million for the nine months ended Sept. 30, according to its filing. The company’s founding family will continue to control it after the IPO.
The offering is being led by JPMorgan Chase & Co., Bank of America Corp., RBC Capital Markets and Wells Fargo & Co. The company’s shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol SDHC.
(Updates with statement in second paragraph.)
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