Posted on: June 1, 2024, 09:58h.
Last updated on: June 1, 2024, 09:58h.
Flutter Entertainment (NYSE: FLUT) announced Friday that it completed the move of its primary listing venue to the New York Stock Exchange (NYSE) from the London Stock Exchange (LSE).
The owner of the Betfair, Paddy Power, and PokerStars brands, among others, said that following its annual meeting on May 1 that investors overwhelmingly approved the move of the stock’s primary listing to New York from London.
This closely follows the recent move of our operational headquarters to New York, with both reflecting the increasing importance of the US sports betting and iGaming market to our business. We have a fantastic position in the US, with FanDuel the clear number one operator, and we look forward to this next step on our journey,” said CEO Peter Jackson in a statement.
Flutter shares will continue trading in London, but the gaming equity’s status on the LSE has been altered to “standard listing” from “premium listing.”
Why NYSE Primary Listing Is Important to Flutter
As Jackson noted, Flutter recently moved its operational headquarters to New York and the company owns 95% of FanDuel.
FanDuel is the largest online sportsbook operator in the US and one of the largest providers of internet casino gaming. That unit is the fastest-growing segment in the Flutter portfolio, which also includes Sisal, MaxBet, Junglee Games, and Adjarabet. As such, the US is the fastest-rising contributor to Flutter’s top and bottom lines, underscoring the relevance of enhancing awareness of the stock in the US.
Foreign companies such as Flutter pursue primary listings in the US is that those moves open the door to potential inclusion in widely observed US equity benchmarks, such as the S&P 500. Based on market cap and profitability metrics, Flutter would be eligible for inclusion in some marquee domestic equity indexes should it shift its primary listing to New York.
The stock’s primary listing move became official about four months after the shares debuted on the NYSE following a long stretch of the stock trading over-the-counter in the US.
More Eyeballs on Flutter Stock
When it announced last year that it was consulting with investors about the possibility of listing in New York, Flutter was clear that much of the motivation behind the move would be to put more eyeballs on its stock.
It appears that move is already paying dividends as data from the first-quarter Form 13F filing season indicate several domestic professional investors have added stakes in Flutter since the stock started trading New York.
By listing in New York, Flutter not only expanded its investor audience, it also likely added liquidity to the shares and improved its access to capital, should that be needed in the future.
