DraftKings Raises Capital as Shares More Than Double Since IPO
Online sports fantasy and gambling company DraftKings (NASDAQ: DKNG) made its public debut in late April at an odd time, considering that play in virtually all professional sports leagues was suspended by the COVID-19 pandemic. But after selling shares at an initial price of just over $17, the company's share price has more than doubled. DraftKings has now announced plans to raise more capital in a sale of another 14 million shares, as certain stockholders also plan to sell 19 million shares of their own.
The company went public from a merger with publicly traded special-purpose acquisition company (SPAC) Diamond Eagle Acquisitions and sports gaming technology company SBTech. The company said the selling stockholders also intend to grant the underwriters of the deal an option for another 4.95 million shares. DraftKings will not realize any proceeds from the shares being sold by the stockholders.
Source Fool.com