Flutter Wins Shareholder Support for New York Stock Listing
Posted on: April 27, 2023, 02:49h.
Last updated on: April 27, 2023, 02:58h.
Flutter Entertainment (OTC: PDYPY) investors overwhelmingly supported a plan by the Irish sportsbook operator to pursue listing its shares in New York.
At the gaming company’s annual meeting on Thursday, 99.99% of investors voted in favor of a US equity listing for the operator. Former Kellogg CEO John Bryant was also approved as Flutter’s new chairman of the board. He’s also a director at Coca-Cola Europacific Partners Plc, Ball Corporation, and Macy’s Inc.
Likely prompted by the exponential growth of FanDuel, which is the largest online sportsbook operator in the US, Flutter said in February it would consult with investors regarding a New York listing. Under the company’s bylaws, 75% of investors needed to vote in favor of that move to make it possible.
Flutter, which owns 95% of FanDuel, could list its shares in the US as soon as the fourth quarter. The Paddy Power owner didn’t reveal if its stock will be traded on the Nasdaq or the New York Stock Exchange (NYSE). DraftKings (NASDAQ: DKNG), the nearest publicly traded comparison to FanDuel, trades on the Nasdaq.
Flutter Leaving London?
At the annual meeting, Flutter told investors that when it moves forward with a US stock listing, it will remain headquartered in Dublin.
However, there’s speculation that the Betfair owner’s pursuit of a New York share listing will spark a flight of companies from London, potentially diminishing the potency of what’s long been the financial hub of Europe. In the US, Flutter currently trades over the counter with its primary equity listing residing on the London Stock Exchange (LSE) where it’s a member of the FTSE 100 Index.
The gaming company noted it’s possible that in the future, its primary listing could shift to New York. In the wake of venture investor Softbank deciding to list UK-based semiconductor maker Arm Holdings in New York over London, UK financial market observers are increasingly concerned the LSE will miss out on big-name listings.
It’s believed at least one other company is planning to drop its London listing for New York, and several other firms are reportedly considering similar moves.
US Listing Makes Sense for Flutter
With FanDuel controlling approximately half the US mobile sports wagering market and ranking as the third-largest online casino operator, its brand recognition in this country is high, making the decision to list shares here practical.
Beyond that, Flutter will gain the benefits of increased access to capital and a broader investor base, including both institutional and retail market participants. Flutter’s New York listing could also dampen shareholder demands to spin off a part of FanDuel. The company said such a transaction would take a backseat to the US listing.
With a current market capitalization of $35.27 billion, Flutter would be the second-largest gaming company trading in the US, trailing only Las Vegas Sands (NYSE: LVS). Flutter would be, by far, the biggest sports wagering/iGaming equity listed in New York as its market value is more than triple that of rival DraftKings.
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Source: casino.org
