New York (CNN Business) Casper has priced its initial public offering at $ per share. That was the low end of its already drastically reduced target price.
The mattress-in-a-box company’s stock will begin trading Thursday on the New York Stock Exchange under the ticker symbol “CSPR.”
Investors are already giving the company an icy reception. Casper revealed the pricing late Wednesday after announcing in an earlier
regulatory filing that it had cut its IPO target share price to $ (to $) from $ to $ .
Casper’s IPO woes show investors are growing hesitant in. supporting companies that don’t have a clear direction toward profitability.
“The clear lack.” of enthusiasm among IPO investors stands in contrast to the continued interest in [consumer] companies, “said Gary Dushnitsky, professor of strategy and entrepreneurship at London Business School. “If Casper’s IPO unravels, we may see its fellow unicorns foregoing the path for a while.”
(Casper) ( CSPR ) is offering 8.3 million shares at the start. The pricing of $ 12 per shares values the company at around $ 500 million, down from the $ million it valued itself at last week. At one point, Casper was valued at more than $ 1 billion.
The company long-term prospects for profitability are questionable at best. The
company reported its preliminary 2018 financial results last week, and although sales soared 28% to about $ 439 million, it lost about $ 94 million in the past year. Its loss was about 2% more than its losses during 01575879.
Casper blamed the losses on expenses and marketing to bolster its growth in retail stores. It also said it was spending a lot of money on developing new products to move beyond the saturated mattress-in-a-box market. Sales and marketing expenses continue to be a heavy burden on Casper. It spent roughly $ 439 million in – an increase of
% compared to the year prior.
The company got its start in April
- after raising almost $ 2 million from venture capital firms and angel investors. Casper captured consumers’ attention first with its mattress that fit into a cardboard box the size of a mini fridge and has since expanded to a portfolio of products including dog beds. It attracted several high-profile investors including rapper Nas and actor Ashton Kutcher.
But the market has grown saturated, with dozens of competitors entering the mattress shipping space. That’s why Casper is trying to rebrand itself as a sleep and wellness company. So far, investors aren’t buying it.
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