Shares of DraftKings (NASDAQ: DKNG) fell 6.1% on Wednesday after the sports betting company announced the pricing of its public offering.Â Â
A total of 32 million DraftKings shares will be sold, with the company selling 16 million and shareholders selling the rest. The offering is priced at $52 per share and is expected to raise more than $1.6 billion. Underwriters also have the option to purchase as many as 4.8 million additional shares in the next 30 days.
DraftKings’ stock fell after pricing its share sale. Image source: Getty Images.
DraftKings is projected to raise more than $830 million from the shares it sells. The company plans to use the funds for general corporate purposes.
It makes sense that DraftKings is using the recent run-up in its share price to raise cash by selling stock. The fantasy sports and betting operator