DFS and sportsbook operator DraftKings Inc has announced that it has commenced an underwritten public offering of 32 million shares of its Class A common stock, comprising 16 million shares being offered by DraftKings and 16 million shares being offered by certain selling stockholders in the firm.
The sale of the combined 32 million shares should secure a handsome pay day for investors seeking to take advantage of the 264% surge in share price since DraftKings’ April debut.
The company and the selling stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 4.8 million shares of Class A common stock. It will not receive any proceeds from the sale of Class A common stock offered by the selling stockholders.
The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed.
In a statement , DraftKings confirmed that it intends to use the net proceeds it receives from the offering for general corporate purposes.
Credit Suisse Securities (USA) LLC and Goldman Sachs & Co LLC are acting as joint book-running managers and as representatives of the underwriters for the offering which will be made only by means of a prospectus.
A preliminary prospectus related to the offering has been filed with the Securities and Exchange Commission (SEC) and is available on the SEC’s website at http://www.sec.gov.