Shares of Skillz Inc. SKLZ, -4.30% tumbled 9.4% in premarket trading Wednesday, after the mobile gaming company said it launched a public offering of 32 million Class A shares. The offering includes 17 million new shares being sold by the company, which at Tuesday’s stock closing price would be valued at $521.7 million, and 15 million shares being sold by selling shareholders.
The total offering represents 8.7% of the total shares outstanding. The company, which went public in April 2020, had a market capitalization of $11.31 billion as of Tuesday’s close. The stock has run up 35.0% over the past three months through Tuesday, while the S&P 500 SPX, +0.29% has gained 6.5%.