IPO Literally Built On Smiles Tanks On Listing, WeWork IPO Somehow Still Apparently Happening

SmileDirect is not finding much love today.
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The hottest startup in the e-Orthodonture space just listed on Nasdaq...and hooooooey, boys! We got ourselves a stinker!

Online dentistry company SmileDirectClub shares slid as much as 15% Thursday after opening at $20.55 a share in the stock’s market debut. 

The company priced its IPO at $23 per share on Wednesday, above the expected range of $19 to $22. SmileDirectClub sold 58.5 million shares, raising $1.3 billion and valuing the online dentistry company at $8.9 billion.

Wow, that's some slide. Sad to see a company that sells mouth braces in mall kiosks fall to a valuation just below $10 billion. But speaking of how money and common sense are not entirely out of sync anymore; what's new with the WeWork IPO?

Regulatory filings show that early investor Fidelity Investments cut its valuation on We Co. to $18.3 billion in March, well before Wall Street began to scale back its own expectations for an IPO. The predicted valuation is now as low as $15 billion, according to people with knowledge of the matter. That would leave Neumann with a stake of about $3 billion -- not enough for a listing in the 500-member Bloomberg Billionaires Index.

So, are we still doing this at $15 billion or what?

WeWork is considering major changes to governance to assuage such concerns, according to people with knowledge of the situation. The company already has taken some steps, such as adding a woman to its board and having Neumann return the $5.9 million of partnership interests initially granted to him as compensation for trademarks used in the rebranding. The company and its biggest backer, SoftBank, are also discussing whether to delay the IPO, people with knowledge of the talks have said.

That sound you hear is Masa Son running a few models on what WeWork's valuation looks like after a pre-IPO partial divestiture of Adam Neumann. 

Now everybody smile!

SmileDirectClub slides after opening at $20.55 in stock market debut [CNBC]

WeWork Founder’s Fortune Plunges as Angst Spreads Ahead of IPO [Bloomberg]

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