A startup with deep metro Detroit roots is expected to go public in one of the biggest initial public offerings of the year today.
SmileDirectClub Inc., an at-home teeth aligner startup with its origins in metro Detroit, will raise more than $1.3 billion from the IPO, which set a $23-per-share price Wednesday evening, according to Bloomberg News. That made it the sixth-biggest IPO of the year.
Though it’s now in Tennessee, SmileDirectClub launched with financial backer Camelot Venture Group, a Farmington Hills-based investment firm founded and co-owned by David Katzman, father of one of the SmileDirectClub founders and a former Dan Gilbert business partner. David Katzman is also CEO of SmileDirectClub.
Alex Fenkell and Jordan Katzman, childhood friends from metro Detroit who met at summer camp, founded the company in 2014. They partnered with Jordan’s father, David, and his Camelot firm that has invested in Quicken Loans Inc. and 1-800 CONTACTS, among others.
SmileDirectClub sold 58.5 million shares of Class A common stock, according to a Securities and Exchange Commission filing.
SmileDirectClub, which dubs itself disrupting the orthodontics industry, is expected to start trading Thursday. The company will list on the NASDAQ Global Select Market in New York under the symbol SDC.
The company was valued at $3.2 billion as part of a funding round last fall. The IPO price values it as as a public company at around $8.9 billion, Crunchbase.com reported. David Katzman will retain control of the company after the IPO through a separate class of stock with special voting powers, according to federal filings.
Source:: Daily Times