The online mattress-in-a-box retailer said it expects to offer 8.35 million shares between $12 (£9.25) and $13 (£10), down from $17 (£13) to $19 (£14.65) that it originally set out last week, according to City AM.

The new prices set would raise $108.6m (£83.7m) at the top end and value Casper at $515.2m (£397m) – even further below the $1.1bn (£848m) valuation it set out to achieve in a private fundraising round last March.

University of Michigan’s Ross School of Business professor Erik Gordon told City AM: “The valuation drop (for Casper) reflects the over-valuation of the prior financing round, a valuation that was made during the disappeared era when growth mattered and profits didn’t.”