SmileDirectClub evaluates its IPO at $ 23 per share and the company at $ 8.9 billion

SmileDirectClub has evaluated its IPO at $ 23 per share, above the expected range, according to a person familiar with the offer.

This offer generates $ 1.3 billion and the online dentistry company worth $ 8.9 billion. SmileDirectClub sold 58.5 million shares, as originally planned.

The start-up, created in 2014, sells teeth aligners directly to consumers on its website and in its "SmileShops" from $ 1,895 for a two-year plan. Founders Alex Fenkell and Jordan Katzman wish to disrupt the orthodontic sector with less expensive treatments for teeth smoothness, convenience and vivid advertising on television and in social media.

The company announced sales of $ 423.2 million last year, an increase of 190% from the $ 146 million reported in 2017, according to its prospectus filed last month. It recorded a net loss of $ 74.8 million last year, more than double the $ 32.78 net loss in 2017.

Acquiring new customers is expensive. SmileDirectClub spent $ 289.3 million on marketing and overhead last year.

SmileDirectClub originally planned to sell 58.5 million shares at a price of between $ 19 and $ 22 each, yielding between $ 1.1 billion and $ 1.3 billion. The company plans to start trading on the Nasdaq on Thursday under the symbol "DDC".

Jordan Katzman's father, David Katzman, has financed the launch of SmileDirectClub's development cycle through his venture capital fund, Camelot Venture Group, and is the managing director. Camelot invests in consumer brands such as 1-800-Contacts and Quicken Loans.

David Katzman's brother, Steven Katzman, is the chief operating officer. The Katzman family, combined, will retain more than 65% of the voting rights between the three men after the offer. Chief Executive Officer David Katzman alone will hold nearly 30% of the votes with 87 million Class B Shares, or 10 votes for every Class A Share vote.

SmileDirectClub operates more than 300 sites, according to its initial prospectus filing. He has also signed partnerships with Walgreens and CVS to open "SmileShops" in their pharmacies.

Customers can visit a SmileShop store to have someone scan their teeth and create a 3D image, which SmileDirectClub then uses to create a custom aligner. They can also order a kit online and send back an impression.

The Nashville, Tennessee-based company plans to use proceeds from its IPO to fund its international expansion, as well as its research and development activities, according to the record. Aligners from SmileDirectClub are currently available in the United States, Canada, Australia and the United Kingdom.