Dental chain Pacific Smiles in $50m float

DENTAL-CARE chain Pacific Smiles is set to raise up to $49.7 million in its initial public offer next month.

DENTAL-CARE chain Pacific Smiles has set an indicative price range of $1 to $1.30 per share for its initial public offer, with shares in the company expected to hit the market late next month.

The company is selling a maximum of 38.2 million shares, or about 25 per cent of the equity in the company, through the offer. The dental chain is set to raise up to $49.7 million at the top of the price range.

The offer involves a sell-down of a maximum 22.6 million shares from existing owners and fresh issue of another 15.6 million shares.

Pacific Smiles currently operates 42 centres with 200 active dental chairs across NSW, Victoria, the ACT and Queensland.

While its growth plan is focused on the opening of new centres, earlier this year it acquired three dental and eye care centres from Medibank in NSW.

At the given range, the offer is priced between 17 to 22 times the forecast fiscal 2015 net profit.

The company will be valued between $152 million and $198 million on listing.

Comparable peer 1300 Smiles currently trades at 25.3 times forward price-earnings.

Pacific Smiles is expected to release its prospectus next week. The offer is being managed by CBA Equities and Bell Potter.