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Casper jumps out of bed with IPO plans
Posted on Monday, 13 January 2020 10:54
US-based mattress manufacturer Casper Sleep has set the ball rolling on its planned stock market flotation in 2020 by filing initial documents with the US Securities and Exchange Commission. The company, which is backed by a number of well-known faces such as actor Leonardo DiCaprio and rapper 50 Cent, set a placeholder of USD 100.00 million to calculate registration fees. However, the final amount raised is usually different, with Casper receiving a reported valuation of USD 1.10 billion following a funding round worth USD 100.00 million in March 2019. New York has been chosen as the bourse, with Morgan Stanley, Goldman Sachs and Jefferies hired to underwrite the initial public offering (IPO). Terms, including the price and number of shares being sold, were not disclosed at this time. Casper is a technology start-up known for selling mattresses online, as well as other products such as pillows, sheets, night lamps and bedroom accessories. The group is not only Internet-based but also has 60 retail stores in the US and Canada and 18 partners including Amazon, Costco and Target. Furthermore, there is an opportunity for the company to have more than 200 brick and mortar locations in North America over time. Casper reaches more than 1.40 million customers in 7 countries. According to Frost & Sullivan, as cited in the prospectus, the global sleep economy market was worth USD 432.00 billion in 2019 and is expected to grow 6.0 per cent annually to reach USD 585.00 billion by 2024. Casper recorded revenue of USD 312.32 million in the nine months to 30th September 2019, up 20.3 per cent from USD 259.69 million in the corresponding period of 2018. However, the company loses money, recording a net loss of USD 67.40 million in the same timeframe, compared to a loss of USD 65.52 million in Q1-3 2019. Proceeds raised in the share sale are expected to be used for working capital, to fund growth and for general corporate purposes. © Zephus Ltd