(Reuters) - Teeth alignment company’s SmileDirectClub Inc on Wednesday priced its initial public offering at $23 per share, above its target range of $19-$22.
The online dentistry startup joins the wave of loss-making companies such as WeWork owner The We Company and food delivery platform Postmates Inc, planning to launch their IPOs, hoping that August’s bout of stock market volatility will subside this month. [nL5N25P04Z]
The company raised about $1.3 billion at a valuation of about $8.9 billion.
The Nashville, Tennessee-based company said it intends to use the IPO proceeds towards redeeming LLC units from its pre-IPO investors and fund a dividend to them and also pay bonuses and funding-related tax obligations.
The listing is a successful resumption of the U.S. IPO market after the Labor Day holiday in the United States at the start of September.
The company, which sells teeth aligners to customers directly through its website, reported a loss of $52.9 million on revenue of $373.5 million during the six months ended June 30, compared with loss of $33.8 million on revenue of $175.1 million a year earlier.
SmileDirectClub is due to start trading on the Nasdaq Global Select Market on Thursday under the symbol “SDC” and the offering is expected to close on Monday.
JP Morgan and Citigroup are serving as lead underwriters to the IPO.
Reporting by Saumya Sibi Joseph and Bharath Manjesh in Bengaluru and Joshua Franklin in New York, Editing by Sherry Jacob-Phillips