DraftKings Trades Lower On 32M Share Offering

Shares of DraftKings were losing ground Monday on news of a stock offering.  

What Happened: DraftKings Inc DKNG announced a public offering Monday of 32 million shares of Class A common stock. The company will offer 16 million shares, with an additional 16 million shares being sold by DraftKings stockholders.

The company has also offered underwriters Credit Suisse and Goldman Sachs the option to purchase 4.8 million additional shares.

DraftKings said it will use the proceeds for general corporate purposes.

Why It’s Important: Shares of DraftKings hit a new high of $64.19 on Friday before closing at $63.78.

The offering lists a proposed maximum pricing of shares at $56.12, based on the list price five days prior to the offering announcement.

Jason Robins, DraftKing's CEO and founder, is not among those selling shares and will own 4.3% of the company after the stock offering.

Benzinga’s Take: DraftKings is facing increased competition from others expanding and entering the online sports betting market. Penn National Gaming PENN also recently raised additional funds.

DraftKings shares were down 6.31% at $59.75 at last check Monday. 

Photo credit: World Poker Tour, Flickr