Dental Offering Backdrop: More Insurance Coverage Orange County Business Journal
More dental insurance coverage and moves by dentists to hand off administrative duties are behind a planned initial public offering by Santa Ana-based Smile Brands Group Inc.
The provider of support services to dentists is looking to raise up to $130 million after expenses in an upcoming stock offering, the date for which hasn’t yet been set.
The offering stands to be the biggest here since 2007.
Smile, which operates Bright Now Dental and other brands, has seen growing sales and profits as dental insurance expands to more people.
Last year, 85% of Smile’s $456 million in revenue came from dental insurance providers, up from 80% two years earlier.
“The dental services industry has experienced an increase in insurance payment arrangements as more employers are adding dental insurance to the benefits packages offered to their employees,” the company said in a filing this month with the Securities and Exchange Commission.
More insured patients bring an increase in “the number of preventive care visits” and “greater utilization of general and specialty dentistry services,” the company said.
