{"id":151371,"date":"2020-10-07T09:29:41","date_gmt":"2020-10-07T16:29:41","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=151371"},"modified":"2020-10-07T10:20:43","modified_gmt":"2020-10-07T17:20:43","slug":"draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/","title":{"rendered":"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close"},"content":{"rendered":"

DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to Tuesday’s close of $56.48.<\/p>\n

\"DraftKings
The DraftKings sportsbook at The Brook in New Hampshire. The stock fell today after the company priced a secondary offering. (Image: NBC Boston<\/em>)<\/figcaption><\/figure>\n

The daily fantasy sports (DFS) company shed more than 15 percent from its recent highs, putting the stock in correction territory. Equities typically drop when firms announce new offerings because those transactions are priced below where the name trades on the open market and dilutes current investors. This is the case with DraftKings. The Boston-based company announced the sale on Monday<\/a>.<\/p>\n

The sportsbook firm said it’s selling 16 million shares, and early investors are doing the same. However, DraftKings itself will only command proceeds from the equity it’s selling. Underwriters Credit Suisse and Goldman Sachs can buy another 4.8 million shares. So if the company sells 20.8 million shares, it will raise $1.08 billion.<\/p>\n

DraftKings will not receive any proceeds from the sale of Class A common stock offered by the selling stockholders,\u201d according to the company. \u201cDraftKings intends to use the net proceeds it receives from the offering for general corporate purposes.\u201d<\/p><\/blockquote>\n

Although it’s trading lower today, DraftKings stock has not retreated to $52. It’s hovering around $54, up 430 percent this year<\/strong>.<\/p>\n

Good News: Lockup Limited<\/h2>\n

DraftKings notes its lockup period ends Oct. 20, in an 8-K filing with the Securities and Exchange Commission (SEC). This means executives and employees that received equity-based compensation can sell stock.<\/p>\n

\n

The good news for investors is two-fold. First, selling shareholders participating in the recent offering agreed to not further reduce their stakes until 90 days after Oct. 5. Second, board members and high-ranking executives agreed to not sell more Class A stock until 45 days have lapsed. Those are important points because those moves limit the new supply of DraftKings stock coming to market.<\/p>\n<\/div>\n

Newly public companies — DraftKings debuted in April<\/a> — typically have six-month lockup periods, and when that time expires, executives and staffers usually sell a massive amount of equity, punishing the stock price in the process.<\/p>\n

Uses for the Cash<\/h2>\n

\u201cGeneral corporate purposes\u201d is the default statement companies, regardless of industry, use when raising capital. It’s a way of telling investors there are uses for the cash without specifying what those uses are.<\/p>\n

\n

In the case of DraftKings, it wouldn’t be surprising if some of the capital is used on marketing and customer acquisition costs. The company estimates ran $200 million to $210 million in the third quarter. Looking further out, the operator has exposure to a significant futures bet.<\/p>\n<\/div>\n

On Tuesday, DraftKings took a $3 million wager on the Green Bay Packers and the universities of Alabama and Georgia to win their respective divisions. At odds of +186 (bet $100 to win $186), DraftKings could pay out $5.5 million to the gambler<\/strong>.<\/p>\n

Investors probably shouldn’t fret over that wager, though. DraftKings has other catalysts<\/a> with which to woo the investment community, and the gambler on that futures parlay bet into a house advantage of 43 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to Tuesday’s close of $56.48. The daily fantasy sports (DFS) company shed more than 15 percent from its recent highs, putting the stock in correction territory. Equities typically drop when firms announce […]<\/p>\n","protected":false},"author":46,"featured_media":151377,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\nDraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org<\/title>\n<meta name=\"description\" content=\"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org\" \/>\n<meta property=\"og:description\" content=\"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-07T16:29:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-07T17:20:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/\",\"url\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/\",\"name\":\"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg\",\"datePublished\":\"2020-10-07T16:29:41+00:00\",\"dateModified\":\"2020-10-07T17:20:43+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg\",\"width\":1200,\"height\":675,\"caption\":\"The DraftKings sportsbook at The Brook in New Hampshire. The stock fell today after the company priced a secondary offering. (Image: NBC Boston)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org","description":"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/","og_locale":"en_US","og_type":"article","og_title":"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org","og_description":"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to","og_url":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-10-07T16:29:41+00:00","article_modified_time":"2020-10-07T17:20:43+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/","url":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/","name":"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close - Casino.org","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg","datePublished":"2020-10-07T16:29:41+00:00","dateModified":"2020-10-07T17:20:43+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"DraftKings (NASDAQ:DKNG) stock is sliding today. The sportsbook operator said it priced its secondary offering at $52 a share, an 8.4 percent discount to","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/10\/dkng-2.jpg","width":1200,"height":675,"caption":"The DraftKings sportsbook at The Brook in New Hampshire. The stock fell today after the company priced a secondary offering. (Image: NBC Boston)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/draftkings-slips-after-pricing-share-sale-at-steep-discount-to-recent-close\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"DraftKings Slips After Pricing Share Sale at Steep Discount to Recent Close"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/151371"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=151371"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/151371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/151377"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=151371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=151371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=151371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}