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- Casper shares popped as much as 32% in its first hour of trading on the New York Stock Exchange.
- The jump comes after the company slashed its initial offering price to $12, the bottom of its price range and down from an earlier range of $17 to $19.
- Casper’s IPO has drawn scrutiny from investors in recent weeks who said the firm’s billion-dollar private valuation reflected a tech-like premium that didn’t align with the company’s core business.
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Casper may be feeling like it left money on the table right now: Shares popped as much as 32% in its first-ever day of trading on the New York Stock Exchange. The online mattress company made its initial public offering to investors at $12 a share Tuesday, the bottom of a $12 to $13 price range that Casper announced Wednesday. That range was a reduction on the $17 to $19 range the company initially expected to price at. The price Casper settled on more than halved the $1.1 billion, unicorn-level valuation private investors had given Casper last year in its final venture funding round. Sentiment around Casper’s unicorn valuation had grown increasingly critical in the weeks leading up to its first day of public trading. Investors questioned Casper’s billion-dollar valuation, arguing the firm had been given a tech-like premium.
Some drew comparisons between the mattress delivery company and office-leasing firm WeWork, whose once ambitious IPO hopes dramatically failed in 2019. But for Casper, the story took a different path: Early investors shrugged off the WeWork comparison and shares traded in the green, climbing as high as $15.85 within the first hour of trading.