Teeth-straightening startup SmileDirectClub is set to starting trading Thursday after raising $1.3 billion in its IPO

Alex Fenkell Jordan Katzman Smile Direct Club

Digital health company SmileDirectClub is set to go public on
Thursday after pricing its initial public offering on
Wednesday. 

The company priced its shares at $23 apiece on Wednesday,
according to a source familiar with the offering. The share price
values SmileDirectClub at $8.9 billion ahead of its first day of
trading.

Nashville-based SmileDirectClub sold 58.5 million shares,
raising $1.3 billion in the offering.

SmileDirectClub sells clear aligners for teeth, as an
alternative to what you might get from an orthodontist. While it
typically costs anywhere from
$3,000 to $7,000
 to get traditional braces or Invisalign-brand
aligners, SmileDirectClub goes for a fraction of that — you can
either pay $1,895 up front, or a total of $2,290 spread out over
two years.

Read more: These
10 buzzy digital health startups are poised to go public in the
next 12 months

Smile Direct Club brightening

The idea behind SmileDirectClub is to make straightening teeth
more affordable by cutting out the steps of going in person to a
dentist or orthodontist to get braces or other alignments. The
company was started by Alex
Fenkell and Jordan Katzman in 2014
.

In October, SmileDirectClub raised $380 million from the
private-equity firm Clayton, Dubilier & Rice and the venture
firms Kleiner Perkins and Spark Capital. The round valued the
company at $3.2
billion
, up from $275 million just two years earlier.

Read more:
SmileDirectClub’s IPO could make the startup’s top investors into
billionaires.

According to the IPO filing, SmileDirectClub’s net loss widened
from $33.8 million in the first half of 2018 to $52.9 million in
2018. The company has increased its customer count from 22,000 in
2016 to about 246,000 in the first half of this year.


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Source: FS – All – Economy – News
Teeth-straightening startup SmileDirectClub is set to starting trading Thursday after raising .3 billion in its IPO