Shares of DraftKings are lower on Monday after the sports-gambling company said it and holders would sell a total of 32 million shares.

The company will offer 16 million shares and certain holders will offer another 16 million.

DraftKings, Boston, said it intended to use the proceeds of its sale for general purposes.

At last check the shares were down 4.8% to $60.67.

DraftKings and the holders will give the underwriters a 30-day option to purchase up to an additional 4.8 million shares.

Credit Suisse Securities (USA) and Goldman Sachs are joint book-running managers and representatives of the underwriters for the offering.

Last week, Needham analyst Brad Erickson initiated coverage of DraftKings with a buy rating and Wall-Street-high price target of $70 a share. 

Erickson said DraftKings was “one of the leading beneficiaries as online sports betting and gambling take off in the U.S. — an opportunity we size between $42 [billion] and $58 billion annually longer term.”

Online sports betting has taken off in the U.S. after the Supreme Court struck down a 1992 federal law banning sports betting at the federal level. A number of states have enacted sports-betting legislation.

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