In a gloomy portent for 2020 debuts, Casper lowers its IPO price range

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Casper, the well-known D2C mattress company, has lowered its IPO price range in a new S-1/A filing made public this morning. The repricing leads to a lower expected valuation for the former startup and a lower IPO raise.

The decision by Casper to shoot lower in its IPO comes after One Medical priced its own public offering conservatively last week, but it was rewarded by the public markets with a dramatic gain in value. That positive reception does not appear to have been enough to help Casper’s IPO pricing cycle.

Let’s calculate Casper’s new valuation range and expected fundraise, figure out its implied revenue multiples, and see if the resulting figures make sense when compared to Purple, its public competitor. For tech-enabled companies heartened by One Medical’s public offering, this is the other side of the coin.

New math