Casper Hopes to Wake up Markets with $12 IPO - InvestingChannel

Casper Hopes to Wake up Markets with $12 IPO

Bed company Casper priced its initial public offering Wednesday evening at $12.00 per share.

At this price, the company would have a market value of $476 million, excluding the underwriters’ allotment.

The online mattress retailer had earlier cut its price range from $17 to $19 a share, to $12 to $13 a share, according to a Wednesday regulatory filing.

Casper plans to list Thursday on the New York Stock Exchange under the symbol “CSPR.”

Casper’s latest round of funding valued the direct-to-consumer business at $1.1 billion. But like many Silicon Valley-backed startups looking to go public, the company has faced scrutiny for its lack of profitability and high costs to acquire new customers, and keep them. Its IPO also comes on the heels of a WeWork IPO fiasco in 2019, which put a dark cloud over the start-up market.

In the nine months ended Sept. 30, Casper reported a net loss of $67.3 million and revenue of $312.3 million.

The company launched in 2014 and was one of the pioneers of the mattress-in-a-box trend. It is now expanding into brick-and-mortar locations.

The mattress retailer was originally planning on raising as much as $182.4 million through its IPO, but it will fall well short of that target.

Casper is planning to use the proceeds from the offering for working capital, funding growth and other general corporate purposes, according to regulatory filings.