Casper ends the first day of trading up after slashing valuation
The opening day of trading in shares of mattress in a box brand Casper proved to be a bit of a rollercoaster.
Having cut the pricing of the shares from US$17-US$19 to US$12-US$13 ahead of the flotation, the company opted for the lowest value.
Trading began at US$14.50 before rising to US$15.85 before falling back and ending the day at US$13.50.
Philip Krim, Casper ceo said he was focused on the longer term. ‘Valuations are just moments in time. This is obviously a huge milestone for us. It doesn’t distract us from building the business we want to build.’
One observer was less upbeat. ‘Casper now is opening its own stores [in the US], and that raises expenses and capital needs,’ says professor Erik Gordon of the University of Michigan Ross School of Business. ‘It is selling through existing retailers, and that shrinks margins. A year from now, its shares are more likely to be half their opening price than twice the price.’