Exclusive: Online mattress retailer Casper to hire IPO underwriters – sources

(Reuters) – Casper Sleep Inc, the U.S. on-line mattress retailer whose buyers embrace actor Leonardo DiCaprio and rapper 50 Cent, is looking for to hire underwriters for an preliminary public providing (IPO), in accordance to individuals acquainted with the matter.

Casper’s IPO comes as the corporate has been increasing into brick-and-mortar retail, transitioning from momentary to everlasting shops. It is betting that its reputation with city millennials will guarantee it doesn’t share the identical destiny as Mattress Firm Inc, the most important U.S. brick-and-mortar mattress retailer that filed for chapter safety final 12 months.

New York-based Casper, which was valued at $920 million in its newest non-public fundraising spherical in 2017, is planning to interview funding banks in April to hire underwriters for its IPO, the sources mentioned, asking not to be recognized as a result of the matter is confidential.

Casper declined to remark.

Launched in 2014, Casper is one in every of a string of on-line mattress retailers, corresponding to Purple, Nectar Sleep and Tuft & Needle, which have squeezed the trade’s outdated gamers. Mattress Firm emerged from chapter and closed about 660 underperforming shops.

Having risen to prominence promoting its mattresses on-line and delivery them out in bins, Casper opened its first everlasting retailer in New York in 2018 with plans to open 200 shops within the coming years.

Led by its co-founder Philip Krim, Casper made its identify by promoting one “universally comfortable” kind of reminiscence-foam mattress, as opposed to providing totally different firmness choices and designs. It now sells three several types of mattresses.

Casper’s buyers embrace retailer Target Corp and funding corporations Lerer Hippeau Ventures, IVP and NEA.

If it goes forward with the IPO plans, Casper could be the newest excessive-profile client firm to debut within the inventory market this 12 months.

Jeans maker Levi Strauss & Co accomplished its IPO final week whereas trip-hailing begin-up Lyft Inc is about to start buying and selling on the Nasdaq on Friday.

Uber Technologies Inc is planning to kick off its preliminary public providing in April, Reuters has reported.

Reporting by Joshua Franklin and Harry Brumpton in New York; Editing by Lisa Shumaker

Our Standards:The Thomson Reuters Trust Principles.

Source link reuters.com

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