How Many Millions Of DraftKings Stock Shares Just Sold Today?

Written By Adam Candee on June 23, 2020
DraftKings stock

Remember when DraftKings upsized its stock offering last week? That sale turned out to be even larger than expected.

A total of 46 million shares of DraftKings stock were purchased Tuesday as the offering completed. The number of new shares held at 16 million, but shareholders exercised their full option for additional sales, bringing that amount to 30 million.

The shares sold at $40, or more than double the price at which they traded on first offer just two months earlier. According to Securities and Exchange Commission (SEC) filings submitted today by DraftKings, the sports betting company received proceeds totaling $620.8 million.

DraftKings stock offering grew and grew

DraftKings initially planned to put up 33 million shares for sale in the offering. That broke down to 14 million new shares and 19 million redistributed shares from a wide swath of current stockholders.

That group includes DraftKings directors and C-suite executives, as well as major names in sports such as:

  • New York Knicks and Rangers owner James Dolan (Madison Square Garden) 
  • New England Patriots owner Robert Kraft (Kraft holdings)
  • Dallas Cowboys owner Jerry Jones (Legends Hospitality)
  • NHL Enterprises

Then came the supersize

The company revised that initial plan late last week. The company posted an additional 2 million new shares of DraftKings stock to go with 5 million additional re-sold shares.

That notable group of current stockholders held an option to sell even more shares. That overallotment accounts for the additional 6 million shares.

DraftKings stock price closed down slightly from Monday but bounced up near $39 in after-hours trading as 7:30 p.m. EDT.

Who grabbed all that stock?

The new SEC filing turned in today by DraftKings details which Wall Street notables acquired the 40 million shares:

  • Goldman Sachs & Co., LLC: 16 million
  • Credit Suisse Securities (USA) LLC: 12 million
  • Morgan Stanley & Co LLC: 3 million
  • UBS Securities LLC: 2.4 million
  • BofA Securities, Inc.: 2.4 million
  • Canaccord Genuity LLC: 600,000
  • Cowen and Company, LLC: 600,000
  • Craig-Hallum Capital Group LLC: 600,000
  • Northland Securities, Inc.: 600,000

The capital raise by DraftKings comes as the US sports betting market prepares to ramp up from pandemic-related shutdowns. Top competitor Flutter also recently announced $1 billion in new funding as the companies ready for additional expansion in the United States.

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Adam Candee

Adam Candee is the managing editor of Legal Sports Report. He covers sports business and news from Las Vegas, where he works as a sports radio host for ESPN, BetQL, and VSiN. Adam is a former editor and reporter at the Las Vegas Sun, Arizona Daily Sun, and KLAS-TV. He can be reached at [email protected]

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