Casper IPO shows WeWork effect on valuations

Author: John Crabb | Published: 13 Feb 2020

The lacklustre initial public offering (IPO) of mattress company Casper is indicative of a wider trend in the US equities market that has spawned from the excessive valuation of shared working space company WeWork.

Casper, who took fame after offering a delivery service boxed mattress with a 100-day return policy, eventually listed this month at a significantly lower value than it had once commanded. In a pre-IPO regulatory filing the company announced it had cut its target share price to between $12 and $13 from $17 to $19, valuing itself at around $500 million. That's around $200 million less than just a week before.

In May 2019 following a funding round, Casper was valued at more than $1 billion.

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KEY TAKEAWAYS

Casper's IPO is indicative of a wider trend in the US equities market that has spawned from the excessive...