DFS and sportsbook operator DraftKings Inc have reported that 32 million shares of their Class A common stock, comprising 16 million shares offered by DraftKings and 16 million shares offered by certain selling stockholders in the group, have been entered into an underwritten public offering.
The selling of the combined 32 million shares could guarantee a beautiful payday for investors looking to take advantage of the 264 percent share price rally since the April debut of DraftKings.
The company and the selling stockholders plan to offer a 30-day option to the underwriters to buy up to an additional 4.8 million Class A common shares. Any proceeds from the sale of Class A common stock provided by the selling stockholders will not be earned.
The offer is subject to market conditions and other conditions and no guarantee can be given as to whether or when the offer will be completed.
DraftKings reported in a statement that it plans to use the net proceeds it earns for general corporate purposes from the sale.
Credit Suisse Securities (USA) LLC and Goldman Sachs & Co LLC serve as joint managers of the books and as members of the underwriters for the deal to be made in a prospectus only.
The Securities and Exchange Commission (SEC) has filed a preliminary prospectus relating to the bid and is available on the SEC website at http:/www.sec.gov.