Casper Sleep, the US-based mattress brand that counts big-box retail group Target as an investor, is going public today in an initial public offering sized at just over $100m.
The company is issuing 8.35 million shares on the New York Stock Exchange priced at $12.00 each, at the foot of a $12 to $13 range that had already been adjusted downwards from $17 to $19. The offering values it at approximately $478m.
Founded in 2014, Casper produces mattresses and additional bedding products such as pillows, duvets, sheets, bedroom furniture and sleep-assistance technology. It increased revenue to $312m in the first nine months of 2019 while increasing its net loss slightly to $67.4m in the process.
The company had raised $340m prior to the IPO, most recently securing $100m from Target, Norwest Venture Partners (NVP), New Enterprise Associates (NEA), IVP, Dani Reiss and Gordon Segal at a $1.1bn valuation in April 2019.
Target provided $75m for Casper as part of a $170m series C round in 2017 that included IVP, NEA, NVP, Lerer Hippeau, Tresalia, Irving Capital and assorted individual investors, valuing the company at $920m post-money.
Casper had been valued at $555m as of a $50m round in 2015 featuring NVP, Lerer Hippeau, NEA, IVP, Slow Ventures, SV Angel, Vaizra Investments, Queensbridge Ventures, the Pritzker Family and various private investors.
Earlier backers included Crosslink Capital, Correlation Ventures, A-Grade Investments, Consigliere Brand Capital, Silas Capital and Cendana Capital.
Affiliates of NEA expressed interest in buying $15m of shares in the offering and IVP $5m, though they have not confirmed whether they did so.
Target’s 9.2% stake in the company was diluted to 7.3% in the offering while NEA’s stake was set to be cut from 15.9% to 12.5%. Casper’s other main investors are IVP (5% post-IPO), NVP (4.9%) and Vaizra Investments (4%).
Morgan Stanley, Goldman Sachs and Jefferies are joint lead book-running managers for the IPO while BofA Securities, UBS Securities, Citigroup Global Markets, Piper Sandler and Guggenheim Securities are also underwriters.
The underwriters have the 30-day option to acquire a little more than 1.25 million shares to lift the size of the offering to more than $115m.
Photo courtesy of Casper Sleep Inc.
