The DraftKings IPO is still set for April despite the ongoing effects of the novel coronavirus pandemic.
Jason Park, the CFO of DraftKings, provided an update to the IPO plan. According to him, the U.S. Securities and Exchange Commission has declared its registration statement effective. This puts the company closer to completing its IPO.
Park points out that the current plan still has the DraftKings IPO reaching completion in April. For this to happen, the plan will need the approval of shareholders from Diamond Eagle Acquisition Corp. (NASDAQ:DEAC). They will be voting on the IPO plan on April 23, reports Bloomberg.
It’s worth noting that the DraftKings IPO isn’t going to be through typical means. Instead, the company is planning to go public via a reverse merger. This will have it combining with Diamond Eagle Acquisition and SBTech.
Plans for the DraftKings IPO were outlined late last year. This has the reverse merger plan keeping current CEO and co-founder Jason Robins leading the new company. The current leadership team will also remain at the company following the IPO.
The DraftKings IPO will have the company’s equity market capitalization sitting at $3.3 billion once the deal closes. The fantasy sports company also already has a $304 million investment set up once the IPO reaches completion.
Diamond Eagle Acquisition has seen major jumps in its stock since announcing the deal with DraftKings. It’s also continuing to see DEAC stock increase as the deal gets closer to completion.
DEAC stock was up 3.98% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
