Posted on: January 29, 2024, 01:53h.
Last updated on: January 29, 2024, 01:53h.
Flutter Entertainment (NYSE: FLUT) has enjoyed a strong start during its first day as a US-listed stock.
In midday trading, shares of the FanDuel parent are higher by 1.36% on volume that’s just over 318,100 shares. Today marks the first for the stock on the New York Stock Exchange (NYSE). The US listing arrived about 11 months after the gaming company told investors it was considering such a move. Previously, Flutter shares trade in the US, but on an over-the-counter basis.
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,” said CEO Peter Jackson in a statement. “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.”
The Irish gaming company recently shed its listing on Euronext Dublin in preparation for trading on the NYSE, but it is retaining its listing on the London Stock Exchange (LSE), though that will be the secondary venue for the stock.
More on NYSE Being Primary Venue for Flutter
With FanDuel ranking as the largest online sportsbook operator in the US and a rising force in the iGaming space, Flutter listing its shares in New York is a practical move.
Not only is FanDuel profitable, it is expected to account for an increasing percentage of Flutter’s earnings and revenue in the years ahead. It’s also one of the most widely recognized gaming brands among US bettors. The Irish company owns 95% of FanDuel with regional casino operator Boyd Gaming (NYSE: BYD) controlling the other 5%. Those factors underscore the potential allure of the NYSE being Flutter’s primary listing venue.
“Since February 2023, management has engaged widely with US investors, existing and potential, along with existing shareholders globally. The feedback received has been very supportive of moving Flutter’s primary listing to the US,” according to the statement. “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 AGM on 1 May 2024. Subject to shareholder approval, the transition is expected to become effective in late Q2/early Q3.”
It’s possible that with the NYSE listing, Flutter will be eligible for inclusion in more US-focused equity indexes. However, it remains to be seen if the stock makes it to the S&P 500, which is typically reserved for US-based firms. With a market value of $36.54 billion, Flutter easily meets the S&P 500’s market capitalization requirement. In fact, the FanDuel parent is now the second-largest gaming equity trading in the US behind only Las Vegas Sands (NYSE: LVS).
Other Benefits for Flutter in NYSE Listing
Beyond index inclusion, there are other perks that could accrue to Flutter by way of making the NYSE its primary listing venue.
Those include boosting the stock’s profile, enhancing liquidity, and broadening its audience of potential investors — both professional and retail.
As the FanDuel parent noted, listing in the US also eases its access to “deeper capital markets,” indicating it could more efficiently raise cash, if needed, than if it didn’t trade on a traditional US bourse.