Ordinary shares in Flutter are now trading under the ticker symbol FLUT on the NYSE.
Launching on the NYSE signals the end of Flutter’s secondary listing on Euronext Dublin. Last week, the group ceased trading shares on the Irish exchange ahead of the New York listing. This was in line with US listing plans set out last month.
Flutter will, however, continue to trade on the London Stock Exchange (LSE) and the group will retain its premium listing on the London exchange. It will also continue trading under the FLTR ticker symbol.
“With our NYSE listing effective today, this is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets,” Flutter CEO Peter Jackson said.
Flutter eyes “optimal” primary listing in New York
Flutter has reported significant growth within the US in recent years due to the success of FanDuel. Acquired in May 2018, while the brand was still a daily fantasy sports operator, FanDuel has grown to become a major US provider of sports betting and igaming.
In addition to launching today on the NYSE, Flutter is eying a move to a primary listing in New York. This would match up with proposals set out this time last year, with the Flutter board saying a primary listing would unlock long-term strategic and capital market benefits.
These, Flutter said, include a greater profile in the US and allowing for better recruitment and retention of US talent. Other potential benefits highlighted are access to deeper capital markets and new domestic investors.
In addition, Flutter said a primary listing on the NYSE would provide greater overall liquidity in its shares.
“Since February 2023, management has engaged widely with US investors, existing and potential, along with existing shareholders globally,” Flutter said. “Feedback received has been very supportive of moving Flutter’s primary listing to the US.
“As a result, the board believes that the NYSE is now the optimal location for Flutter’s primary listing of its shares and that the transition should be made as soon as practicable.”
This proposal will be put to shareholders as a special resolution at the 2024 Flutter AGM on 1 May 2024. Subject to shareholder approval, the transition is expected to become effective in late Q2 or early Q3.
Flutter remains committed to LSE
Should this proceed as expected, Flutter intends to retain its UK listing as a secondary listing. By doing so, Flutter says this will ensure the greatest number of investors can continue to hold its shares and benefit from future value creation.
Shares on the LSE have fluctuated today since Flutter released a statement confirming the US listing. The price of LSE-listed shares initially fell almost 2.00% and are currently trading at 0.89% below today’s opening price, at the time of writing.
“We believe a US primary listing is the natural home for Flutter given FanDuel’s #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future,” Jackson said.
US activity drives growth in 2023
Earlier this month, Flutter posted a trading update for 2023. This included further evidence of its ongoing growth in the US.
Group revenue for the 12 months to 31 December was up 25% to £9.51bn for Flutter’s 2023 financial year. This, Flutter said, was driven by a 38% rise in revenue from operations in the US to £3.06bn.
US operations were the main revenue source, drawing 37.9% of all revenue. On a constant currency basis, US sports revenue hiked 39% and gaming was 47% higher. Flutter also noted a 38% increase in average monthly players to more than 3.2 million.
Speaking in an earnings call after the update, Flutter CEO Peter Jackson outlined a three-year strategy for success in the US. He said Flutter plans for FanDuel to complete a race to the finish line in the final year.
Original article: https://igamingbusiness.com/finance/flutter-trading-new-york-stock-exchange/
