DraftKings to Issue More Stock Following Strong Public Debut

DraftKings plans to sell 33 million additional shares as its stock price has more than doubled since the online sports-betting site went public in April.
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DraftKings  (DKNG) - Get Report plans to sell 33 million additional shares as its stock price has more than doubled since the online sports-betting site went public in April.

DraftKings will offer 14 million shares of its Class A common stock to the public, and an additional 19 million shares to existing stockholders, the company said in a statement. 

An additional 4.95 million shares will be granted to underwriters, the company said. Goldman Sachs and Credit Suisse are handling the stock sale.

The Boston-based fantasy sports and sports betting company in late December announced its plan tie-up with publicly traded special-purpose acquisition company Diamond Eagle Acquisitions and SBTech.

The deal was officially sealed in April, with the shares rising 10% to $19.21 in the first day of trading. Since that time, the stock has more than doubled, with the shares ending the trading day Tuesday at $40.57. 

DraftKings last month reported a first-quarter loss of $68.7 million, or 18 cents a share, vs. a loss of $29.5 million, or 8 cents a share, in the comparable year-ago quarter, as a lack of live sporting events globally due to the coronavirus pandemic slammed profits.

However, new product offerings such as fantasy sports and betting on eNASCAR, Counter Strike, and Rocket League as well as pop culture free-to-play pool contests covering democratic debates and TV shows like "Survivor," "The Last Dance" and "Top Chef" helped offset losses.

The return of some sports, including some professional golf tournaments and the restart of the English Premier League, also is expected to draw in bettors.

Shares of DraftKings were down 2.3% at $39.64 in trading on Wednesday.