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Highlights:
- Dentalcorp IPO is trending in Canada after it announced that it would be selling its 6,135,000 subordinate voting shares.
- In 2021, dentalcorp completed 62 acquisitions and added 67 new locations.
- dentalcorp expects that in the fourth quarter of 2021, it will report 20 per cent higher revenue compared to the same period in 2020.
The Toronto-based dentalcorp Holdings Ltd. (TSX:DNTL) announced on Wednesday, January 5, that a few underwriters have agreed to purchase the company's 6,135,000 subordinate voting shares for C$ 16.3 apiece.
The company and the underwriters have reached this agreement on a 'bought deal' basis, and the gross proceeds to the company will be around C$ 100 million.
The group of underwriters is led by CIBC Capital, TD Securities Inc., and BMO Capital Markets. dentalcorp caught the attention of stock market enthusiasts after this announcement, and 'Dentalcorp IPO' started trending in Canada.
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dentalcorp not only announced the deal of selling its subordinate voting shares but also provided a business update. Here's why it is important for the investors:
What's in store for investors?
dentalcorp seems to have huge expansion plans, and it claims to be the fastest-growing network of dental practices in Canada.
The company said that it would use the gross proceeds to support its acquisition plans, which accelerated last year and is expected to stay strong in 2022.
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In 2021, dentalcorp successfully completed 62 acquisitions and added 67 new locations. According to the company, these acquisitions will likely represent over C$ 43 million in 2021 PF Adjusted EBITDA.
dentalcorp expects that in the fourth quarter of 2021, it will report 20 per cent higher revenue compared to the same period in 2020.
Bottom line
In the last seven days, DNTL stock surged 6.5 per cent and 4.4 per cent year-to-date (YTD).
In the third quarter of 2021, dentalcorp reported revenue of C$ 250.2 million and represented an increase of 22.2 per cent compared to Q3 2020.
Meanwhile, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 40.2 per cent year-over-year (YoY) to C$ 46.2 million.
In Q3 2021, dentalcorp's adjusted net income was C$ 17.5 million and its adjusted free cash flow was C$ 12.7 million.
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