Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, September 15, 2023

Article Excerpt

SMITH DOUGLAS HOMES CORP. has filed paperwork with U.S. regulators for an initial public offering (IPO) of common shares. The stock will trade on the New York exchange under the symbol SDHC. Smith Douglas is a Georgia-based homebuilder focused on southeastern and southern U.S. states. Based on the number of closings in the southeastern U.S., it is one of the fastest-growing private homebuilders. The company operates in five southern U.S. markets: Atlanta, Raleigh-Durham, Charlotte, Nashville, and Alabama. Unlike many larger homebuilders, Smith Douglas’ strategy is to acquire finished lots from third-party land developers and bankers. This reduces the amount of land carried on its balance sheet, providing it with an “asset-light” business model. The company paid $79.1 million in August 2023, for Houston-based Devon Street Homes. The acquisition gives Smith Douglas entry into its sixth growth market. Smith Douglas founder Tom Bradbury launched the company in 2008, sensing an opportunity for growth following the global financial crisis. By 2012, it had closed 500 homes…