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Smith Douglas Homes debuts with solid 14% gain in first IPO of 2024

by California Digital News

Smith Douglas Homes Corp. rose 14% in its opening day of trading Thursday as the first initial public offering of 2024, in a hopeful sign for new stock issuance.

Smith Douglas Homes’ stock

wrapped up its debut on the New York Stock Exchange at $24 a share, up from its first trade of $23.28, and handily above its IPO price of $21 a share. The stock rose an additional 0.8% in after-hours trade.

The IPO raised about $161 million for the company, with 7.69 million shares in the deal.

JPMorgan, BofA Securities, RBC Capital Markets and Wells Fargo Securities are the joint book-running managers for the IPO. Underwriters are offering an additional 1.15 million IPO shares for proceeds of $30.5 million.

The offering comes after a mostly quiet year for IPOs, but many companies are waiting in the wings after rocky markets, turmoil in the banking sector and a lack of deal-making chilled activity.

Also read: Reddit, Shein and Stripe may lead a revived IPO market in 2024

Late Wednesday, the home builder priced its IPO at the top of its $18-$21 range, in a sign of strength.

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 

 in 2003.

Mike Murphy contributed.

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