Sportradar Group AG, a company backed by Michael Jordan and Mark Cuban, saw its shares fall 3.5% following its market debut, after the company raised $672 million in its initial public offering and private placements.

Shares in the Swiss technology company opened at $27, the same price as its initial public offering price, giving the company a valuation of $7.98 billion.

Later...

Sportradar Group AG , a company backed by Michael Jordan and Mark Cuban, saw its shares fall 3.5% following its market debut, after the company raised $672 million in its initial public offering and private placements.

Shares in the Swiss technology company opened at $27, the same price as its initial public offering price, giving the company a valuation of $7.98 billion.

Later Tuesday, shares were trading at $26.07

Founded in 2001, Sportradar collects and analyzes sports data and then provides services such as live odds to bookmakers. Sports leagues and media companies also rely on its data tools.

Alongside the public offering, Sportradar is receiving $159 million in private placement investments from affiliates of Todd Boehly’s Eldridge Industries LLC, Radcliff Management LLC and other investors. In total, Sportradar expects proceeds of $672 million.

In 2015, NBA legend and Charlotte Hornets owner Mr. Jordan and Dallas Mavericks owner Mr. Cuban invested in the company. In its prospectus, Sportradar disclosed that both own minority interests of less than 5% each.

Both investors have been with the company since 2015, and own minority interests of less than 5% each, the company disclosed.

Sportradar is part of an online gambling market that is growing and includes sports betting and digital casino operators such as Caesars Entertainment Inc., FanDuel Group and DraftKings Inc. among others. Last year, Mr. Jordan also took a stake in DraftKings and became a special adviser to its board.

Sportradar said it hopes to further tap into the ever-expanding market of sports betting as the trend of its legalization hastens around the world, providing fertile grounds for companies looking to attract eager sports fans everywhere.

“The future digital sport fan wants to have much deeper, faster and condensed information about his or her favorite team and player,” Founder and Chief Executive Officer Carsten Koerl said in the prospectus.

“Sports betting is an important part of this; but, the opportunity is much bigger, as the whole digital sport ecosystem is on the verge of a digital transformation,” Mr. Koerl added.

Currently, its customers include over 900 sports-betting operators, for which it covers over 750,000 events annually across 83 different sports. It also supplies products and services to over 350 media customers.

For the past two years, the company has been growing its revenue through both organic means and acquisitions. In the year ended Dec. 31, 2020, revenue rose 6.4% to 404.9 million euros, equivalent to $478.2 million.

In the first six months of this year, Sportradar said it has generated revenue of €272.1 million, a 42% growth over the first half of 2020. Profit in the period fell to €17.7 million from €20.2 million.

With newly-filled coffers, the company said it intends to use its funds toward future acquisitions or investments in companies, new technologies, or products that complement its business.