Casper shares finish 13% up on first day of trading despite troublesome IPO
Casper has seen its shares rise nearly 13 per cent during its first day of trading despite a troubled IPO which valued it well below expectations.
The online mattress retailer was valued at more than $1 billion (£770 million) during a private funding round last year.
Despite investors expecting a similar valuation when the online retailer went public this week, January’s news of a $67 million (£52 million) loss on $312 million (£240 million) in revenues for the first nine months of 2019 severely affected its share prices.
On Wednesday Casper announced that its 8.35 million shares would be offered between $12 (£9.23) and $13 (£10), down from $17 (£13) to $19 (£14.6) that it had originally expected.
This valued the mattress retailers at $515.2 million (£397 million), around half of the valuation many expected.
Its shares opened at $12 before the stock surged 30 per cent to a high of $15.85 during its first day of trading, before settling at around $13.50 offering some optimism to investors, which include Purple, Nectar, Serta Simmons’ Tuft & Needle, Walmart’s Allswell mattress brand and Eight Sleep.