SmileDirectClub is seeking to raise up to $1.3 billion in an IPO

SmileDirectClub is seeking to raise up to $1.3 billion in an initial public offering as a series of companies presses ahead with flotations. The Nashville-based group, which promises to straighten teeth more cheaply and less obtrusively than traditional braces, has built its business selling so-called clear aligners directly to consumers, but remains unprofitable. It joins a list of companies that have gone public this year amid fears that a slowing global economy risks derailing a more than decade-long bull market in US stocks. While IPOs such as ride-hailing apps Uber and Lyft remain below their offer price, shares in some, from Beyond Meat to videoconferencing software maker Zoom Video, have climbed… SmileDirectClub plans to sell 58.5 million class A shares for between $19 and $22 a share. Based on the 104.8 million shares expected to be outstanding following the IPO, that would give the group a valuation of about $2.3 billion. That would fall short of the $3.2 billion the business was valued at last October in a $380 million funding round led by Clayton, Dubilier & Rice and Kleiner Perkins… For the six months ended June 30, SmileDirectClub reported a pro forma loss of $68.2 million and revenues of $373.5 million. 

Peter Wells