Home / Business / SmileDirectClub prices IPO at $ 23 per share and values ​​the company at $ 8.9 billion

SmileDirectClub prices IPO at $ 23 per share and values ​​the company at $ 8.9 billion



Tooth assistant Jessica Buendia looks at a scanned image of the patient's teeth in SmileDirectClub's SmileShop located in a CVS store Wednesday, April 24, 2019, in Downey, California. CVS Health is venturing into dental care with plans to offer the relatively new teeth-directing service.

Jae C. Hong | AP

The online dental care company SmileDirectClub priced its IPO at $ 23 per share and topped the company's initial forecasts, according to a person familiar with the offer.

The offer collects $ 1

.3 billion and values ​​the online dental care company at $ 8.9 billion. SmileDirectClub sold 58.5 million shares, the same as it had originally estimated.

The startup, which was founded in 2014, sells tooth adjustments directly to consumers on its website and in its "SmileShops" starting at $ 1,895 for a two-year plan. . Founders Alex Fenkell and Jordan Katzman want to disrupt the dentistry industry with cheaper tooth straightening treatments, convenience and splashy TV and social media ads.

The company reported $ 423.2 million in sales last year, up 190% from $ 146 million it reported in 2017, according to its prospectus filed last month. It posted a net loss of $ 74.8 million last year, more than double the net loss of $ 32.78 in 2017.

Getting new customers is expensive. SmileDirectClub spent $ 289.3 million on marketing and general expenses last year.

SmileDirectClub originally estimated that they would price their shares at between $ 19 and $ 22 each. The company plans to start trading on Nasdaq on Thursday under the ticker "SDC."

Jordan Katzman's father, David Katzman, funded SmileDirectClub's seed round through his venture fund, the Camelot Venture Group, and is the company's CEO. Camelot invests in brands directly to consumers, such as 1-800 contacts and Quicken loans.

David Katzman's brother, Steven Katzman, is the chief executive. The Katzman family, together, will retain more than 65% of the voting rights between the three men following the offer. CEO David Katzman alone will hold nearly 30% of the vote with 87 million Series B shares, which control 10 votes for every vote that is offered an A share.

SmileDirectClub operates more than 300 sites, according to its original prospectus application. It has also signed partnerships with Walgreens and CVS to open "SmileShops" inside their pharmacy.

Customers can visit a SmileShop for someone to scan their teeth and create a 3D image, which SmileDirectClub then uses to build a custom align. They can also order a kit online and send back an impression.

The Nashville, Tennessee-based company plans to use the proceeds from its IPO to fund international expansion and research and development, according to the filing. SmileDirectClub customizations are currently available in the US, Canada, Australia and the UK


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