Smith Douglas Homes rises in first IPO of 2024

Smith Douglas Homes

11/01/2024 17:18

** Smith Douglas Homes  SDHC.N  rises in debut on Thurs, an
encouraging start for the 2024 U.S. IPO market
    ** SDHC opens at $23.50 vs $21 IPO price. Shares last up
12.9% at $23.70
    ** IPO of ~7.69 mln shares priced at $21, top end of 18-$21
range, for $161.5 mln gross proceeds
    ** Atlanta, Georgia-based firm builds single-family
entry-level and empty-nester homes mostly in the southeast and
Texas
    ** Founded in 2008, it has built more than 13,000 homes and
co believes it had 2,297 total closings in 2023, up 4% yr/yr,
per the prospectus filing
    ** JP Morgan and BofA leading the IPO
    ** The IPO market saw signs of a revival last year,
especially with high-profile listings of SoftBank's chip
designer Arm  ARM.O , grocery delivery app Instacart/Maplebear
 CART.O  and German sandal-maker Birkenstock  BIRK.N 
    ** But disappointing debuts and volatile trading in their
shares combined to dampen investor enthusiasm

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))