Jan 27, 2020

The IPO-pocalypse didn't last long

Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

The IPO-pocalypse sure didn't last long.

What's happening: Three months after WeWork pulled its offering, we're expecting an offering above $1 billion this week and another next week. It also appears that mattress maker Casper will push forward with its listing, albeit as an "undercorn."

  • First up will be Reynolds Consumer Products, which is best known for its aluminum foils, plastic wraps and Hefty trash bags. At the top of its range, it would raise around $1.3 billion at a $5.7 billion market cap.
  • Next week we should get PPD, a private equity-owned pharma contract research group that could raise $1.6 billion at a $9.2 billion market cap.

Yes, both of these are profitable, well-established companies. And few pundits seem to care about the unprofitable biotechs that also expect to price this week (sorry biotechs — maybe you should do something more interesting than curing our diseases and saving our lives... have you considered scooters?).

So that brings us to Casper Sleep, the unprofitable, upstart mattress maker that was inexplicably valued like a tech company by venture capitalists.

  • Casper this morning set IPO terms that seemed to acknowledge how the private markets erred.
  • If it prices at the top of its range, the company would be valued at around $744 million, which is well shy of the unicorn valuation it previously received (no, the fully-diluted value doesn't get you there either).
  • But, but, but: The very fact it's launching its road-show, in the face of ongoing skepticism, suggests that the macro IPO chill has thawed. Or at least that bankers are willing to take the reputational risk.

The bottom line: No one company's failings, no matter how massive, can single-handedly derail the broader equity or capital markets. That's true whether it's WeWork, Boeing, or whatever misery comes next.

Go deeper

Unpacking Casper's sleepy IPO

Illustration: Aïda Amer/Axios

Casper Sleep, the mattress retailer that was valued at more than $1 billion by venture capitalists, last night priced its IPO at the bottom of an already-slashed price range.

Reality check: Yes, this went just about as badly as most of us thought it would. No, it shouldn't be used as an avatar for the broader IPO or DTC markets.

Go deeperArrowUpdated Feb 6, 2020 - Economy & Business

Casper falls below unicorn status in new IPO filing

Photo: Rachel Murray/Getty Images for Casper Sleep Inc.

Mattress maker Casper Sleep on Monday seemed to acknowledge skepticism toward its upcoming IPO by disclosing that it doesn't expect to maintain the "unicorn" valuation it received from venture capitalists.

The bottom line: Casper plans to price shares at between $17 and $19, giving it a midpoint valuation of $705 million. It last raised private funding in early 2019 at a valuation of nearly $1.1 billion.

Go deeper: Casper lists inability to control social media influencers as IPO risk

Keep ReadingArrowJan 27, 2020

The average NBA team is now worth $2.1 billion

Reproduced from Forbes; Chart: Axios Visuals

The average NBA franchise is now valued at $2.12 billion, per Forbes — a figure that has grown 476% in the past decade.

Why it matters: Thanks to the NBA's international growth and the $24 billion TV deal it signed with ESPN and Turner in 2014, team values have grown at a much faster rate than the other three major U.S. sports leagues.

Go deeperArrowFeb 12, 2020 - Sports