Services
SmileDirect Reaches Unicorn Status After Announcing Potential Pricing for IPO
Published:
Last Updated:
SmileDirectClub has filed an amended S-1 form with the U. S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company intends to price its 58.537 million shares in the range of $19 to $22 per share, with an overallotment option for an additional 8.78 million shares. At the maximum price, the entire offering is valued up to $1.48 billion. The company intends to list its shares under the symbol SDC.
The underwriters for the offering are JPMorgan, Citigroup, Merrill Lynch, Jefferies, UBS, Credit Suisse, Guggenheim Securities, Stifel, William Blair and Loop Capital.
This is an industry pioneer, as the first direct-to-consumer medtech platform for transforming smiles. Through its teledentistry technology and vertically integrated model, SmileDirect is changing the oral care industry.
Its clear aligner treatment addresses the large and underserved global orthodontics market. An estimated 85% of people worldwide suffer from malocclusion, yet less than 1% receive treatment annually. The goal is to improve penetration into this untapped market by democratizing access to a more affordable, convenient and accessible solution for a straighter smile. It believes it is the leading player in this early but massive opportunity.
Since its founding in 2014, it has helped over 700,000 members across all 50 U.S. states, Puerto Rico, Canada, Australia and the United Kingdom, and it has opened over 300 SmileShops, including in partnership with CVS and Walgreens.
In the filing, the firm described its finances as follows:
Our total revenues increased 190%, to $423.2 million in 2018 from $146.0 million in 2017. Our total revenues for the six months ended June 30, 2019 were $373.5 million, an increase of 113% over the same time period in 2018. We generated net losses of $(74.8) million and $(32.8) million and Adjusted EBITDA of $(16.9) million and $(21.1) million in 2018 and 2017, respectively, and net losses of $(52.9) million and Adjusted EBITDA of $2.3 million for the six months ended June 30, 2019. Our rapid growth validates our value proposition and compelling business model.
The company intends to use the net proceeds from this offering to purchase and cancel LLC units from pre-IPO investors, pay incentive bonuses, pay distributions to pre-IPO investors and for working capital and general corporate purposes.
24/7 Wall St.The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
