DraftKings Is Betting on a Second-Round Stock Offering

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DraftKings (DKNG) - Get Report is wagering big-time on investors wanting additional action on the company's long-term growth trajectory.

The recently public online betting giant plans to sell 33 million additional shares, wagering that the hot action on its stock price since going public in April will entice more investors to step up to the table.

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.

While the company lost money in the first quarter thanks the coronavirus pandemic and both sports and sports-betting getting shelved globally, it did see an uptick in demand for other product offerings such as fantasy sports, eNASCAR and betting on other less-conventional kinds of wagers like the Democratic nominations.

The return of some sports after a three-month pandemic-induced hiatus, including some professional golf tournaments and the restart of the English Premier League, also is expected to draw in bettors.

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