- Legal States
Filip Mishevski September 15, 2021 3 min read
Sportradar Successfully Completes Its IPO on NASDAQ
Sportradar, the reputable and well-known sports betting provider, has successfully completed its initial public offering (IPO) and is now listed on the NASDAQ exchange. The company filed for an IPO back in August, and had Morgan Stanley, Citigroup, J.P. Morgan and UBS Investment Bank as lead book-running managers.
Sportradar Completes IPO
The IPO, under the ticker SRAD, launched at $25.67 yesterday. In typical fashion, the price moved upward to $26.60 quickly, but it couldn’t hang on. An hour later, SRAD had fallen to $24.70 before inching upward and closing yesterday afternoon at $25.05.
In the previous week, Sportradar announced that it had plans on selling a total of 19 million Class A shares. Each of the shares would be priced at $24 and, if all of them were sold, the company’s value could rise to over $513 million. Additionally, underwriters were given 30 days to acquire 2.85 million more shares at the listed IPO price. Company insiders are prohibited from selling shares for a certain period due to the fact that Sportradar’s shares were not subject to a lock-up agreement.
Carsten Koerl, the CEO of Sportradar, marked the IPO launch by ringing the opening bell of the NASDAQ exchange. He stated that the ringing of the bell is a massive milestone for the history of the company, adding that the listing is a testament to Sportradar’s resourcefulness, ambition, and originality of all its employees, but also the commitment and strength of the partners of the company, the customers’ vision, and the investors’ confidence and support.
Koerl concluded by saying that in the upcoming period, Sportradar will continue to drive digital transformation in the sports ecosystem due to the fact that it has massive interest in developing innovative solutions and products that drive great engagement from the fans.
Sportradar Was Supposed to Hook Up With SPAC in March
Back in March, Sportradar had a small hiccup after the US Securities and Exchange Commission (SEC) flagged a deal in which the company was supposed to partner with the Horizon Acquisition Corp. SPAC. But, the company did not stop there, which is why it managed to successfully complete its IPO. According to reports, Sportradar hopes to net around $624 million in net proceeds.
Judging from the latest developments, the business model that the company has applied is working. Sportradar has revenue-sharing agreements and/or subscriptions with numerous reputable betting operators, including the likes of FanDuel and DraftKings. Massive industry players like Twitter and ESPN are also worth a mention. Recently, Sportradar even managed to sign a 10-year deal with NHL.
According to the IPO filing, Sportradar had a very successful year in 2020, as it recorded a revenue of around $478 million. That is a year-on-year increase of 6.4%, which means that the company was the largest sports betting provider in the industry.