Dental assistant Jessica Buendia looks at a scanned image of a patient's teeth at SmileShopClub & # 39; s SmileShop located inside a CVS store Wednesday, April 24, 2019, in Downey , Calif. -Sports service.
Jae C. Hong | AP
Online dentist company SmileDirectClub priced its IPO at $ 23 per share, ahead of the company's initial expectations, according to a person familiar with the offering.
The offer raised $ 1
The startup, founded in 2014, sells tooth aligners directly to consumers on its website and "SmileShops" starting at $ 1,895 for a two-year plan. Founders Alex Fenkell and Jordan Katzman want to disrupt the orthodontics industry with less expensive dental treatment, convenience, and stunning television and social media. million reported in 2017, according to the prospectus filed last month. It posted a net loss of $ 74.8 million last year, more than double the net loss of $ 32.78 in 2017.
Acquiring new customers is expensive. SmileDirectClub spent $ 289.3 million on marketing and general expenses last year. The company plans to start trading on Thursday in the Nasdaq under the grader "SDC."
Jordan Katzman's father, David Katzman, financed the seed of SmileDirectClub through his venture fund, Camelot Venture Group, and the company's CEO. Camelot invests in direct consumer brands, such as 1-800-Contact and Quicken Loans.
David Katzman's brother, Steven Katzman, is the chief operating officer. The Katzman family, combined, retains more than 65% of the voting power between the three men after the offering. Only CEO David Katzman holds about 30% of the vote with 87 million Class B shares, controlling 10 votes for every 1 vote offered in part A.
SmileDirectClub operates more than 300 locations, according to the preliminary filing of this prospectus. . It has also signed partnerships with Walgreens and CVS to open "SmileShops" within their drugstores.
Customers can visit a SmileShop to have someone scan their teeth and create a 3D image, which SmileDirectClub then uses to build a custom aligner. They can also order a kit online and return an impression.
Nashville, a Tennessee-based company plans to use the proceeds from the IPO to fund global expansion and research and development, according to the filing. SmileDirectClub aligners are currently available in the United States, Canada, Australia and the U.K.