Casper Sleep’s stock price closed at $11.31 on its second day of trading on the public markets, falling 16 percent below its previous close and below its IPO price.
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The company’s stock opened at $14.50 on Thursday, its first day of trading, and closed at $13.50. Its stock opened at $13.97 Friday morning before dropping to $11.31 by the close of markets.
It hasn’t been the smoothest transition from private to public for the mattress startup. Casper initially set a price range of between $17 and $19, dropping the company’s valuation to about $786 million–quite a bit below the $1.1 billion valuation Casper last had as a private company after it raised its $100 million Series D in March 2019.
Earlier this week, Casper lowered the price range to between $12 and $13, further sinking the valuation. It eventually priced its shares at $12 apiece, at the bottom of the range, and was then valued at $475.5 million ($490.6 million if underwriters exercise their options).
The company’s stock did pop on its first day of trading, but didn’t perform as well on Friday, when stocks across the Dow Jones, S&P 500, and Nasdaq were down.
Illustration Credit: Li-Anne Dias
