Genius Sports’ stock slides as former owner prepares to sell 20 million shares

Genius Sports’ former owner, Apax Partners, is planning to sell 20 million shares in the New York-listed data giant.

Genius Sports confirmed a public offering of the 20 million ordinary shares has commenced, which has resulted in its stock sinking 10% in pre-market trading.

The firm’s share price has fallen from $6.04 at previous market close to $5.40 at the time of writing, although its stock is up 69% this year, giving it a market cap today of more than $1.2bn.

Alongside the public offering of the shares, underwriters will have a 30-day option to purchase up to an additional three million ordinary shares from Apax.

Genius Sports confirmed it was not selling its own shares and that it would not receive any proceeds from the offering.

Directors and senior executives are also not offloading any of their own holdings in the company.

Goldman Sachs is acting as the sole bookrunning manager for the offering.

Genius Sports went public in October 2020 via a merger with dMY Technology Group II which valued the combined business at around $1.5bn.

At the time of the listing, Apax confirmed it would remain the largest single shareholder in the business.

Apax acquired Genius Sports from Three Hills Capital Partners for an undisclosed sum in 2018.