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SmileDirectClub Raises $1.3 Billion in Above-Range IPO

Crystal Tse

(Bloomberg) -- SmileDirectClub Inc. raised $1.35 billion after pricing shares above its targeted range in the fifth-biggest U.S. initial public offering of the year.

The maker of alternatives to dental braces sold 58.5 million Class A shares on Wednesday for $23 each, according to a statement. SmileDirectClub had offered the shares for $19 to $22 each.

The listing values the company at about $8.9 billion based on the outstanding shares as listed in its filings with the U.S. Securities and Exchange Commission.

SmileDirectClub’s offering is the biggest in the U.S. since May, when Uber Technologies Inc. raised $8.1 billion in its IPO. It’s one of only seven U.S. listings topping $1 billion and the first to do so since pet supply company Chewy Inc. raised $1.02 billion in June.

The listing by SmileDirectClub could could set the tone for IPOs expected this fall. Those planned offerings include exercise company Peloton Interactive Inc., which filed on Tuesday to raise up to $1.16 billion, and WeWork, the office-sharing company whose IPO plans have been beset by doubts among potential investors and its largest backer, SoftBank Group Corp. and its affiliates.

SmileDirectClub lost $32 million on revenue of $196 million for the three months ended June 30, according to its filing. That compared with a loss of $14 million on revenue of $107 million for the same period a year earlier.

The offering was led by JPMorgan Chase & Co. and Citigroup Inc. The shares are expected to begin trading Thursday on the Nasdaq Global Select Market under the symbol SDC.

(Updates with valuation in third paragraph)

To contact the reporter on this story: Crystal Tse in New York at ctse44@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Michael Hytha, Josh Friedman

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