Casper Sleep Estimates IPO to Raise as Much as $182 Million

Casper Sleep, the New York mattress and accessories retailer, estimates its proposed initial public offering will raise as much as $182 million.
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Casper Sleep, the mattress and accessories retailer, said its proposed initial public offering could raise as much as $182 million.

In a Securities and Exchange Commission filing, the New York company said it would offer 8.35 million shares at $17 to $19 each. Casper also offering the underwriters an option on 1.25 million additional shares.

At the $19 upper end of the estimate, and excluding the option to the underwriters, the offering values all of Casper Sleep at around $744 million. Reports from last March said that a round of fundraising valued Casper Sleep at $1.1 billion.

The company two weeks ago filed to go public on the New York Stock Exchange under the symbol CSPR.

Casper Sleep, founded in 2014, has been growing sales rapidly, but its marketing spending has put the company deep in the red. Its offering also comes as many investors have switched their focus away from fast growth on the top line to profit on the bottom one.

Casper estimated its 2019 net loss at $91.4 million to $96.4 million, compared with $92.1 million in 2018. 

It expects to report revenue of $437.3 million to $441.3 million, up from $357.9 million in 2018. At the midpoint of the estimated revenue range, that's a rise of 23%.

Sales and marketing expenses are estimated around $156 million, up 23% from a year earlier.

Casper operates 60 retail stores in the U.S. and Canada and has a prominent online presence.

Casper Sleep is backed by number of major venture capital firms, including New Enterprise Associates of Chevy Chase, Md. Other holders include the Minneapolis retailing giant Target  (TGT) - Get Report.

Reuters has reported that Casper's investors also include the actor Leonardo DiCaprio and the rapper 50 Cent.