SmileDirectClub (SDC) got off to a rocky start in trading Thursday, as the first trade of its public life was $20.55, about 10% below its initial public offering pricing.
Teeth-straightening provider SmileDirectClub late Wednesday announced that its class A shares were priced at $23 a share, slightly above the $19- to $22-a-share range it had said it would be targeting.
At that price, the deal will raise $1.35 billion for the Nashville-based company. Last October, SmileDirectClub was valued at $3.2 billion in a private fundraising round led by Clayton, Dubilier & Rice, Kleiner Perkins and Spark Capital.
The company operates 300 centers, including partnerships with drugstore chains CVS (CVS - Get Report) and Walgreens (WBA - Get Report) , or customers can order doctor-prescribed teeth-alignment kits by mail.
SmileDirectClub shares at last check were down 23% to $17.71.
CVS is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells CVS?