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Builders and building materials

US housebuilder Smith Douglas prices IPO at high end of range

Smith Douglas Homes Corp priced its initial public offering (IPO) at the top end of the estimated range on Wednesday, in a bid to raise US$161.5 million.

Some 7.7 million shares went for US$21, having been marked as low as US$18, with the float offering a glimmer of positivity after a slow year of market activity.

Smith Douglas said it would begin trading on the New York Stock Exchange on Thursday under the ‘SDHC’ ticker.

Underwriters were offered 30-day options to purchase an additional 1.5 million shares, the company added.

Smith Douglas, a Georgia-based homebuilder, reported US$93.5 million in net income and revenue of US$547.3 million last year.

This placed it among the largest US housebuilders founded in recent years, according to the company.

The float marks a notable moment for America’s IPO market early on in the year, after 2023 saw proceeds slump 66% on the preceding five-year average, according to EY.

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