Casper Sleep Cuts Estimated IPO Range to $12-$13 a Share From $17-$19

Casper Sleep, the mattress-and-accessories producer, cut the estimated range at which it expects to go public to $12 to $13 a share from $17 to $19.
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Casper Sleep, the mattress-and-accessories producer, cut the estimated range at which it expects to go public to $12 to $13 a share from $17 to $19. 

The top end of the new price range values the New York company at about $520 million, down from $760 million based on the previous range. 

A Securities and Exchange Commission filing shows Casper is offering about 8.35 million shares. It has offered the underwriters an option on another 1.25 million shares.

At the top of the new range, the 9.6 million shares are valued at $124.8 million. That compares with $182 million at the top of the previous range.

The company, which plans to list on the New York Stock Exchange under the ticker symbol CSPR, said it's an emerging growth company as defined by the SEC. This designation gives Casper and other such companies the right to reduce their reporting requirements.

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Casper estimates the global addressable market for what it calls the sleep economy at $432 billion, with $79 billion, or 18%, of that total located in the U.S. 

The company also sees this market growing at a 6.3% compound annual growth rate from 2019 through 2024.

Casper says it generates $3 of revenue, net of promotions, for every $1 spent on marketing with 1.4 million customers served in seven different countries.

The company disclosed earlier this month that it had a loss of $92.1 million on revenue of $357.9 million in 2018 and a loss of $73.4 million on $250.9 million in 2017.

“We believe sleep is rapidly becoming the third pillar of wellness and is poised to undergo the same massive transformation that fitness and nutrition have as they became major consumer categories,” the company said in its filing.

Casper is scheduled to debut on the NYSE on Thursday.