The Stockradar Group’s stock prices experienced a significant dip in prices on their first day of trading. The stock price at the time of IPO had been $27 per share. The total estimated valuation had been $21 billion. But on Tuesday, the first day of trading, stock prices dipped almost 7% to $25.05.
The Sportradar Group has been able to sell 19 million shares of Class A type. They have raised $513 million from their Initial Public Offering. After the IPO, around 1.11 billion shares of Class A and Class B type will remain outstanding.
The Sportradar Group’s headquarters are in St Galen, Switzerland, and its services are utilized by sports betting companies like FanDuel, DraftKings. William Hill and Facebook Switzerland also use Sportradar services.
According to crypto sports betting news, Sportsradar also announced an extension of its agreement with FanDuel. Sportradar will now be FanDuel’s official partner for match odds and other data till 2028. The Sportradar-FanDuel partnership has led to more agreements with major sports leagues like NBA, NHL, MLB, Nascar, and more.
But according to the Chief Executive of Sportradar, Carsten Koerl, the IPO is more important for Sportradar to have a public brand that can draw in the client rather than raise funds. But Koerl also clarified that the funds raised from the IPO would be reinvested in the company’s growth.
The revenue of Sportradar was $478 million in 2020, and its profit was $26.1 million. But the growing popularity of sports betting brand DraftKings is now cutting into the profit and revenue of Sportradar. The Oregon Lottery Commission has already replaced Sportradar and chosen DraftKings as its official sports betting partner.
As a result, there was a bit of anxiety marring Sportradar’s entry on the Nasdaq, which was rung in by the sporting legend Michael Jordan.
Some experts believe that although Sportradar’s entry into public trading may not have been the most satisfactory, there is still much growth potential. Just in July 2018, Sportradar was valued at $2.1 billion, while in 2021, its extent of market capitalization after just a day of trading is estimated to be around 7.4 billion.
Sportradar works with more than 150 sports leagues and around 900 partner agencies to collect and process sports data and media. Even the International Olympic Committee has worked with Sportradar.
Sportradar is a strong company that has shown high potential for growth in recent years, but now industry experts are keeping a close eye on the firm to see if it can sustain its growth in the face of intense competition.