No Place Like Home: Georgia-based home builder Smith Douglas Homes sets terms for $150 million initial public offering

Smith Douglas Homes, a southeastern U.S. homebuilder focused on single-family homes, announced terms for its initial public offering on Wednesday.

The Woodstock, Georgia-based company plans to raise $150 million by offering 7.7 million shares priced at $18 to $21. At the midpoint of the proposed range, Smith Douglas Homes would achieve a fully diluted market value of $1.0 billion.

Smith Douglas Homes engages in the design, construction and sale of single-family homes in the southeastern United States, targeting communities with entry-level and empty home buyers. The Company's goal is to become one of the dominant home builders in the South and Southeast and intends to grow operations within its existing footprint and expand into new markets. In the fiscal year ended December 31, 2022, Smith Douglas closed 2,200 homes, representing a five-year compound annual growth rate of +16%, and increased sales by +26% over the same period.

Smith Douglas Homes was founded in 2008 and had sales of $771 million for the twelve months ended September 30, 2023. The company plans to list on the NYSE under the symbol SDHC. JP Morgan, BofA Securities, RBC Capital Markets, Wells Fargo Securities, Nomura Securities, WR Securities and Zelman Partners LLC are the joint bookrunners on the transaction. The price is expected to be announced the week of January 8, 2024.