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- Casper, the online bed mattress business preparing to go public, slashed its target share price range, according to a Wednesday filing
- The brand-new price values Casper at a portion of the $1.1 billion private markets valued it at in its latest financing round.
- The start-up has actually marketed itself in its IPO prospectus as a tech business.
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Preliminary shares in Casper will be cheaper than formerly anticipated.
Casper cut its target share cost variety for its going public to in between $12 and $13 according to a filing with the Securities and Exchange Commission on Wednesday. That slashes the company’s total valuation to around $500 million, below the $7682 million the online mattress merchant predicted just over a week prior, on January 27.
It’s a fraction of what private markets have valued the business at. In Casper’s more recent funding round, private stakeholders gave the company a $1.1 billion evaluation. Public financiers may be more skeptical
In its January IPO prospectus, the business branded itself to prospective financiers as a tech company, utilizing the word “technology” 121 times, even more times than WeWork did. The business stated its innovation will drive its future growth. But for now, its only innovation product for sale is a clever lamp.
The business’s primary company is a direct-to-consumer model that offers bed mattress to clients online. That design has made it a reputation as the Warby Parker of mattress companies. The start-up, which began in 2014 and has actually delivered bed mattress to more than 1.4 million clients, now has a physical existence too, consisting of 60 shops.
Casper submitted to go public in January, with Morgan Stanley, Goldman Sachs, and Jefferies leading the IPO, according the Casper’s SEC filings.