DraftKings stock is on the rise

  • DraftKings has set company records with its Q3 results even with a low NFL Betting turn out this year.
  • The company plans to raise about $1 billion by selling shares along with some of its top shareholders.
  • The money will be used for corporate needs and possibly to help marketing and expansion in the US.

BOSTON – According to preliminary figures filed on Monday, DraftKings had a record high Q3 despite low NFL betting numbers and is now set to sell stocks to raise money for the future.

In these documents filed on Monday with the Securities and Exchange Commission, DraftKings has announced a stock offering which would raise around $1 billion by selling shares in the company now that Q3 potential results are out.

The company’s projected revenue for Q3 was reported as $131-$133 million which is up 42% year-on-year even though DraftKings says that “atypical hold rates from NFL wagering” had a negative impact on the revenue.

It is estimated that the revenue would have been $15 million better if the National Football League betting was up to the average yearly rate.

The company now plans to offer 32 million class A shares with half of those shares being sold by DraftKings and the other half being sold by existing shareholders.

Among the shareholders that have agreed to sell an amount of the shares is former SBTech owner Shalom McKenzie who has been said to sell seven million shares which is worth $420 million.

The New England Patriots owner Robert Kraft also plans to sell some shares owned by him and his two sons, Johnathan and Daniel. The three of them have stock worth $172 million in the company and plan to sell around 10 percent of the shares.

There has been no exact price announced for the stocks but the stock’s closed at an all-time in the market on Friday at $63.78. Even with just a $60 share price, DraftKings would be able to raise $960 million.

The money that DraftKings makes is said to be used for “general corporate purposes” and with the stock price up at an all-time high, it is a perfect time to raise money.

The company has already had a healthy balance sheet and $1.2 billion in cash reported in the Q2 results in August. The money that is made now could fund the increased marketing and expansion in the US legal sports betting market especially to states like Illinois and Tennessee who will launch legalized sports betting at some point this year.

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