SmileDirectClub plummets 28% on the first day of trading

This slide marks the worst start of the year on the stock market for a US company valued at more than $ 1 billion, according to Dealogic data on IPOs in US markets. In comparison, the shares of

Uber Technologies
Inc.

fell 7.6% on the first trading day in May.

SmileDirectClub is listed on Nasdaq under the ticker symbol SDC. The company sells clear gutters directly to consumers without requiring visits to orthodontic practices at a fraction of the cost of traditional treatments.

Clayton, Dubilier & Rice, Kleiner Perkins and Spark Capital supported a valuation of $ 3.2 billion last year. Its IPO has been closely watched by other companies in the emerging teledent sector, such as Candid Care Co. and Uniform Teeth, seeking to disrupt the traditional orthodontic industry.

Even with its first-day fall, SmileDirectClub has been increasing valuation since its last round of financing. Based on Thursday's closing price, the company has a market capitalization of more than $ 6 billion.

Established orthodontists have questioned the methods of society. The American Association of Orthodontists said in a statement in July that she "seriously worried" about the approach taken by SmileDirectClub and its peers. The group said it filed a lawsuit against the start-up with dental boards and dental authorities from 36 states.

SmileDirectClub defended its methods and dismissed the group's complaints as the reaction of a deep-rooted industry that tries to defend its profit margins.

A spokesperson for SmileDirectClub did not respond to a request for comment.

Write to Alexander Osipovich at [email protected]