​Casper faces nightmare after slashing IPO valuation

Casper house in covent garden

Casper Sleep has again slashed the amount it is seeking in its initial public offering to encourage investors to buy a stake in the struggling retailer.

The online mattress-in-a-box retailer said it expects to offer 8.35 million shares between $12 (£9.25) and $13 (£10), down from $17 (£13) to $19 (£14.65) that it originally set out last week, according to City AM.

The new prices set would raise $108.6m (£83.7m) at the top end and value Casper at $515.2m (£397m) – even further below the $1.1bn (£848m) valuation it set out to achieve in a private fundraising round last March.

University of Michigan’s Ross School of Business professor Erik Gordon told City AM: “The valuation drop (for Casper) reflects the over-valuation of the prior financing round, a valuation that was made during the disappeared era when growth mattered and profits didn’t.”

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few moments before your account is updated.