Smith Douglas Homes has filed for an initial public offering, citing strengths such as a “land-light” and conservatively leveraged business model.
The Woodstock, Ga., company had 2022 revenue of $755.4 million, up from $518.9 million in 2021.
Smith Douglas, which focuses on southeastern and southern states, typically buys finished lots through lot-option contracts from third-party land developers or land bankers. The company believes its lot acquisition strategy “reduces our operating and financial risk relative to other homebuilders that own a higher percentage of their land supply on balance sheet.”
The company plans to seek a New York Stock Exchange listing under the symbol SDHC.
Smith Douglas plans to use proceeds to buy newly issued LLC Interests from Smith Douglas Holdings LLC, which in turn plans to use the funding for purposes including repaying credit facility debt and redeeming Class C and Class D units.
Smith Douglas Homes may also use some of the proceeds to acquire or invest in businesses, products, services or technologies.