DraftKings to sell 32m shares

DraftKings hopes to raise $1.03bn through the public offering.
DraftKings hopes to raise $1.03bn through the public offering.

DraftKings aims to raise equity as a response to the difficult conditions imposed by the pandemic.

US.- Gaming giant DraftKings has announced a new syndicated deal in which it will offer 32m class A shares for sale.

Half of the shares will be offered by DraftKings itself and the other half from certain shareholders.

The Boston-based sports betting platform hopes to raise $1.03bn in the public offering. The proceeds will be designated to general corporate purposes.

DraftKings reported losses of 164.1m (or 55 cents per share) for the second quarter, and is expected to operate at a loss of around 37 cents a share in the third.

CEO Jason Robins and other management members will not be selling any of their shares. Robins owns 16.8m class A shares and 393m class B shares which allow him to control the company.