Article 4Z0K8 Casper: The Unfriendly IPO

Casper: The Unfriendly IPO

by
martyb
from SoylentNews on (#4Z0K8)

takyon writes:

Casper's IPO is officially a disaster

Casper's attempt at a public debut is becoming downright embarrassing. The mattress-in-a-box company dramatically slashed its initial public offering price, cutting its valuation and dimming hopes of a positive reception by investors.

The company said Wednesday in a regulatory filing that it had cut its IPO target share price to $12 to $13 from $17 to $19. That values the company at around $500 million, down from the $705 million it valued itself at last week. At one point, Casper was valued at more than $1 billion. Its shares priced at the low-end, or $12, the Wall Street Journal reported.

The New York-based startup filed to go public earlier in January. It plans to trade under the ticker symbol "CSPR" on the New York Stock Exchange.

Casper's long-term prospects for profitability are questionable at best. Casper reported its preliminary 2019 financial results last week, and although sales soared 23% to about $439 million, it lost about $94 million in the past year. Its loss was about 2% more than its losses during 2018.

See also: Casper prices its IPO at $12 a share, giving it a valuation of $490 million, confirming that it's no longer a unicorn

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