SMILEDIRECTCLUB made history with its US$1.35bn IPO, but for all of the wrong reasons. The stock inexplicably plunged 29% in Thursday's debut session after pricing its IPO a dollar above the range. It was the first US$lbn-plus IPO to price above range and trade down in three years, according to Renaissance Capital. JP Morgan, Citigroup, Bank of America Merrill Lynch, Jefferies, UBS and Credit Suisse were wary of strong interest in the deal that was coming from retail investors. They ended up concentrating the bulk of the 58.5m shares at US$23 with institutional hands. "You couldn't tell that there was a problem from the book," a source involved in the underwriting told IFR.
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