Posted on: December 8, 2023, 04:43h.
Last updated on: December 8, 2023, 04:43h.
Flutter Entertainment (OTC: PDYPY) announced that it’s aiming for its debut on the New York Stock Exchange (NYSE) on Monday, January 29, 2024.
The 20-F filing with the Securities and Exchange Commission (SEC) precedes this announcement, setting expectations for Flutter to trade in the US under the ticker “FLUT.” Concurrently, Flutter stock will be removed from Euronext Dublin and thus will be delisted from the EUROSTOXX Index.
As previously communicated, Flutter believes that it is appropriate to maintain just two listings to minimise regulatory complexities and has notified Euronext Dublin of its intention to cancel its secondary listing on Euronext Dublin with effect from 8.00 am (GMT) on Monday, 29 January 2024,” according to a statement. “The last day of trading of Flutter’s ordinary shares on Euronext Dublin will be Tuesday 23 January 2024, with trading suspended from close of business on that day to allow for the settlement of pending trades and repositioning instructions, in advance of effectiveness of the US listing.”
Flutter holds a 95% stake in FanDuel, with the remaining 5% controlled by Boyd Gaming (NYSE: BYD).
Flutter US Index Possibilities
Flutter disclosed that it will maintain its listing on the London Stock Exchange (LSE), preserving its membership in the FTSE 100 Index — a widely tracked gauge of UK-listed equities.
With a market capitalization of $28.59 billion as of today’s close, Flutter would be the second-largest gaming stock in the US if it listed in New York today, trailing only Las Vegas Sands (NYSE: LVS). By that metric, the FanDuel parent is more than double the size of MGM Resorts International (NYSE: MGM) and more than triple the size of Wynn Resorts (NASDAQ: WYNN).
However, because Flutter remains based in Dublin, its US-listed shares will not be eligible for inclusion in the S&P 500 or any other index maintained by S&P Dow Jones. That could limit the number of benchmarks, index funds and exchange traded funds (ETFs) that buy Flutter shares.
Had the gaming company opted for a Nasdaq listing over NYSE, it would have been eligible for inclusion in the Nasdaq-100 Index (NDX) in the future, but NDX components must be Nasdaq-listed names.
US Listing Makes Sense for Flutter
A US listing presents a strategic decision for Flutter as the US market is its fastest-growing major market. FanDuel forms part of an online sports betting duopoly with DraftKings (NASDAQ: DKNG), and is one of the largest internet casino operators in the country.
By obtaining a US listing, Flutter gains access to a broader array of investors — both professional and retail. Internal regulations of professional investors often prohibit them from buying stocks that trade over-the-counter, suggesting that the NYSE listing could potentially lead to increased investment in Flutter shares.
Moreover, if the company eventually decides to spin-off FanDuel, that stock would be eligible for inclusion in S&P indexes due to its US base. Flutter has previously indicated that the parent’s US listing will take precedence over any spin-off plans.