DraftKings officially became a public company on Friday following its merger with SBTech, and the sportsbook’s shares grew by 15 percent within 30 minutes of trading.
Darren Rovell of ActionNetwork.com reported DraftKings—trading on the NASDAQ under the moniker DKNG—opened at a value of $17.81 per share on Friday, though that price rose to $20.25 within half an hour.
DraftKings CEO Jason Robins—one of the company’s co-founders—confirmed the deal to go public “included a $304 million investment from Capital Research and Management Co, Wellington Management Co and Franklin Templeton.” In addition, the daily fantasy sports (DFS) site will also have more than $500 million of unrestricted cash to boost its presence in the U.S..
Fellow co-founder Matt Kalish—who has become DraftKings’ president of North American business—tweeted his excitement to be going public on Thursday:
“Incredible moment to be taking @DraftKings public tomorrow! Once in a lifetime ride with @JasonDRobins, @PaulLiberman and our unbelievable team. Thank you to every Customer who gave us a chance to serve you, and every last supporter. You can find us on @Nasdaq under DKNG.”
According to the Associated Press (via the New York Times), the company has a total value of $3.3 billion following the merger.
SBTech co-founder Shalom McKenzie had the most to profit from Friday’s change, with shares valued at $583 million at the time of opening.