Brace manufacturer SmileDirectClub that works with the clients without a medical examination is about to conduct an initial public offering on Nasdaq. Thanks to the IPO, the company plans to raise about $ 1.3 billion.
The company applied for the IPO in August. The number of shares offered and the range of the price have already been made public. 58.5 million A-class papers with the SDC ticker will be placed. They will be sold in the range of 19-22 US dollars. JPMorgan and Citigroup will serve as the organizers of the placement.
The company is engaged in the production of removable braces. A high point of their products is the low price and work without the dentist and orthodontist’s examination. SmileDirectClub has got over a hundred branches. Examination of the clients is as follows: the specialist takes a 3D picture of the patient’s jaw and sends it to the dentist. The doctor must confirm that the proposed method of tooth correction is correct. After that, the bracket production begins. Many dentists criticize the company for this approach, believing that the tooth correction should be done after a direct examination of the patient.
In 2018, the revenue of SmileDirectClub almost doubled, amounting to 420 million US dollars. The company’s net loss also doubled to $ 75 million.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group