​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.”

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