Casper Sleep Inc., the privately held American e-commerce company primarily engaged in retail sales of sleep products online, headquartered in the New York City, investors of which included a number of high-profile personnel and entities such as Leonardo di Caprio alongside Rapper 50 Cent, had downgraded its initial public offering valuation forecast below $1 billion, much lower than a previous estimate that the online mattress retailer announced last year.
On Monday, the 27th of January 2020, in a regulatory filing, the company said in was expecting to offer 9.6 million shares which would likely to be priced between a range of $17 to $19 per share, which would proffer the Initial Public Offering a valuation of $182.4 million and the company a market cap of $768 million.
In point of fact, Casper had been valued at an above $1 billion figure less than a year earlier during a fundraising campaign, however, latest forecast suggested a lack of appetite from the investors for Initial Public Offerings following the money-draining attempt of WeWork, which had sidestepped an Initial Public Offering back on September last year.
Meanwhile, suggesting investors have become more and more selective over Initial Public Offerings, a senior research analyst at IPO Boutique, Jeff Zell said on Monday (January 27th), “Valuations in the private market are currently under the microscope, especially with unicorns, as they attempt to tap the public markets. ”