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Posted at: 04/03/2024 03:36h
The last update was on April 3, 2024 at 03:36h.
Flutter Entertainment, the parent company of FanDuel (NYSE:FLUT), is planning to transfer its main share listing from the New York Stock Exchange to the New York Stock Exchange by 2024. This move will be made to appeal to more retail investors.
News surfaced Just two months. After the Dublin-based company made its debut on the NYSE and scrapped their EURONEXT listings along the way. Flutter currently has its primary listing on the London Stock Exchange. The LSE is Europe’s biggest bourse. Gaming company Flutter also belongs to the widely-followed FTSE 100 Index.
Flutter shares are up 11.8% year to date, but they have been trading slightly lower than their debut on the NYSE Jan. 29, with the declines being attributed to Flutter’s earnings report for the fourth quarter, which indicated weakness in certain markets outside of the US.
At its May annual meeting, the gaming company will ask the shareholders to vote in favor of the move from LSE to NYSE. Flutter has a $34,49 billion market capitalization, which is second only to Las Vegas Sands Limited (NYSE: LVS) in terms of the largest US gaming firms.
What is the importance of Flutter primary listing in New York?
The Flutter team is pursuing the primary listing of New York. LSE suffers another blow. Last year, UK-based Arm Holdings took a similar step. Brexit might be a factor in this.
Brexit played an important role as well. Since the UK left the European Union, the financial hubs of London, Amsterdam Frankfurt and Paris have a much higher likelihood to see each other as competitors. Craig Clay of DFIN Solutions noted that the US is more likely to gain from overseas exchanges competing with one another than collaborating.
Flutter and other foreign firms are interested in primary listing in the US because they can potentially be added to widely-observed US equity benchmarks. such as the S&P 500. Flutter, based on its market capitalization and profitability metrics would qualify for inclusion in certain marquee domestic equity indices if it moved to New York as its primary listing.
This could motivate the company to abandon the London primary listing because passive and active fund managers who benchmark US indexes that could include Flutter would have to purchase shares if the stock was added..
The US Flutter Footprint is Growing
FanDuel, while an international firm, is closely associated with US sports betting, which has grown faster than the rest of the globe. Flutter, after 2023, FanDuel’s first year of profitability, told investors that its US operations could produce core profits between $635 and $785 millions this year. This is up from the $167 million it generated in 2023.
FanDuel, Flutter’s largest brand in terms of revenue, is also the leading online sports betting operator in the US. DraftKings’ (NASDAQ DKNG) rival DraftKings controls only 36%.
Flutter might also be able to receive more revenue if it moves its primary listing from the UK to the US. Attention from Retail Investors – a group of market participants that have embraced online gaming equities.
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