Sports betting and fantasy sports giant DraftKings reported last week that it has priced a stock offering of 16 million shares of the company at $56 per share, potentially raising $1.66 billion.
In a statement last week, DraftKings said it would sell 16 million shares from the company and 16 million shares offered by certain company stockholders for $56 per share. The Boston-based company will not receive any proceeds from the stockholders’ sale.
The sale comes just six months after the company went public. DraftKings said in the statement its proceeds from the stock sale would be used for general corporate purposes. At the end of the second quarter, DraftKings had $1.24 billion on its balance sheet with zero debt.
Shares of DraftKings, traded on Nasdaq, closed $53.33 last Wednesday, down $3.45 or 6.08 percent.
In conjunction with the stock sale, DraftKings said in a filing with the Securities and Exchange Commission it would report revenue of between $131 million and $133 million for the quarter that ended Sept. 30.
The company’s market spending to acquire sports betting customers was between $200 million and $210 million, primarily because of its expansion into new states, including Illinois. The company said in the filing it has more than 1 million customers playing on the DraftKings site every month.
DraftKings offers mobile and retail sports wagering in 10 states—Colorado, Illinois, Indiana, Iowa, Mississippi, New Hampshire, New Jersey, New York, Pennsylvania, and West Virginia.
