Dental services provider Smile Brands cancels planned initial public offering
By APWednesday, May 26, 2010
Dental services provider Smile Brands cancels IPO
NEW YORK — Dental services provider Smile Brands Group Inc. withdrew its plan for an initial public offering, according to a Securities and Exchange Commission filing late on Tuesday.
The company said it was canceling its IPO because of market conditions. It had hoped to raise about $125 million in early May, but postponed its IPO as broader stock markets sold off.
The revival of IPOs last fall is now under strain because of volatile trading in broader markets. Three other companies have withdrawn IPO plans this month, and five have postponed their public debuts.
Smile Brands posted net income of $36.6 million in 2009 after a loss of $20.1 million in 2008. Revenue grew 2.6 percent to $456.5 million from $445 million.
In the first three months of 2010, however, Smile Brand’s net income fell 58 percent to $1.6 million despite a slight rise in revenue.
Credit Suisse and Jefferies & Co. were the lead underwriters on the canceled offering.
