Australia’s newest dental chain Smiles Inclusive listed on Friday at a 15 per cent premium to its $1 issue price.

The stock — trading under the ASX code SIL — hit the bourse at $1.15 and traded as high as $1.16 before cooling to $1.085 at Friday’s close.

Almost 6 million shares changed hands — or about 15 per cent of the 41.2 million shares quoted on the ASX.

The chain, trading as Totally Smiles, is buying 52 dental practices across the country along with a profit-sharing schemes for the former owners.

Smiles Inclusive told investors on Friday that 49 of the acquisitions had so far been completed.

“More than 30 per cent of practices in the initial portfolio [have] already integrated onto a centralised practice management platform,” the group said.

The total cost of the acquisitions is $66 million – which would be funded from the offer proceeds (expected to net out at $27 million) and a $36 million finance facility.

Smiles is competing for investor attention with two other, similarly named ASX-listed dental chains — Pacific Smiles (ASX:PSQ) and 1300 Smiles (ASX:ONT).

Pacific has about 75 practices while 1300 Smiles has about 24. All three are shaded by insurer BUPA which owns about 200 practices in Australia and New Zealand.

There are about 7000 dental practices in Australia.

Smiles sold 35 million shares at $1 apiece. Of these, 13.2 million are in escrow for two years and another 3.5 million canot be traded for 12 months.

The cash is going towards improved patient experience, better equipment, a direct marketing strategy and buying more practices.

Between 40 per cent and 60 per cent of profit is planned to be paid in shareholder dividends from 2019.

The venture is led by CEO Mike Timoney who controls a 16.7 per cent stake following the float.

The group is forecasting $5.8 million profit this year – up from $3.9 million in 2017.

The newly combined group would have made a profit of just under $6 million from $25.4 million revenue in 2017.

The lead manager of the float was Morgans Corporate.

Here are 12-month share price graphs for two other ASX-listed dental chains Pacific Smiles and 1300 Smiles:

Pacific Smiles (ASX:PSQ) shares over the past year. Pacific will be a competitor for Smiles Inclusive.


1330 Smiles (ASX:ONT) shares over the past year. 1300 Smiles will also compete with Smiles Inclusive.