The IPO Buzz: Smith Douglas Homes (SDHC) in Countdown to Year’s First Big IPO

The clock is counting down to the pricing tonight of the first big IPO of 2024Smith  Douglas Homes Corp. (SDHC proposed) plans to price its IPO of 7.69 million shares at $18.00 to $21.00 tonight – Wednesday, Jan. 10, 2024. The IPO would raise $150.0 million, if priced at the $19.50 mid-point. That price – $19.50 – would give the Georgia homebuilder a valuation (market cap) of $1 billion. Smith Douglas Homes Corp.’s stock is expected to start trading on Thursday, Jan. 11, 2024, on the New York Stock Exchange.

J.P. Morgan, BofA Securities, RBC Capital Markets, Wells Fargo Securities, Wolfe/ Nomura Alliance and Zelman Partners are the joint book-runners.

This is a profitable Georgia homebuilder that caters to first-time buyers and empty nesters in growing markets in the Southeastern U.S. – Atlanta, Raleigh, Charlotte, Birmingham, Huntsville, Houston and Nashville. The company says the average sale price is $330,000.

Smith Douglas Homes Corp., founded in 2008, is based in Woodstock, Georgia, about 30 miles north of Atlanta. The company describes itself as “one of the nation’s fastest-growing private homebuilders by number of closings,” according to the prospectus.

The company uses a “land-light” business model that involves buying “finished lots through lot-option contracts from third-party land developers or land bankers,” the prospectus says. This lot acquisition strategy “reduces our up-front capital requirements and generally provides for ‘just-in-time’ lot delivery, which closely aligns with our pace of home orders and home starts.” This is a key part of the company’s strategy to control expenses, according to the prospectus.

Smith Douglas Homes Corp. plans to use $71 million of the IPO  proceeds to repay debt under its existing credit facility as part of a refinancing, according to the prospectus.

Profitability and growth in the Southeastern Sun Belt are the twin pillars of Smith Douglas Homes Corp.’s appeal to IPO investors.

Smith Douglas Homes Corp. reported net income of $134.81 million on revenue of $770.1 million for the 12 months that ended Sept. 30, 2023.

(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on’s website.)

Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.

To see what time the NASDAQ IPOs are expected to trade, please log in to: then scroll down to IPO Message.

Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.