Flatter's NYSE debut gets off to a good start
Flutter Entertainment (NYSE: FLUT ) got off to a strong start on its first day of trading in the U.S.
Shares of the FanDuel parent company were up 1.36% in midday trading on volume of just over 318,100 shares. Monday marked the stock's first day of trading on the New York Stock Exchange (NYSE). The US listing comes about 11 months after the gaming company told investors it was considering the move. Previously, Flutter shares were traded over-the-counter (OTC) in the United States.
With our listing on the New York Stock Exchange taking effect today, this is a key moment for the group as we make Flutter more accessible to US investors and access deeper capital markets. "Given Fanduel's No. 1 ranking in the U.S. market, where we expect the U.S. market to contribute the lion's share of profits in the near term, we believe a U.S. initial listing is Flutter's natural home," CEO Peter Jackson said in a statement. "
The Irish gaming company delisted from Euronext Dublin and is preparing to list on the New York Stock Exchange. However, the company will retain its listing on the London Stock Exchange (LSE), which will serve as a secondary trading venue for the stock.
More information about the New York Stock Exchange as the main venue
Since FanDuel is the largest online sportsbook in the U.S. and a rising star in iGaming, Flutter's listing in New York is a pragmatic move.
Not only is FanDuel profitable, but it's expected to take a growing share of Flutter's earnings and revenue in the coming years. It is also one of the most well-known gaming brands among US bettors. The Irish company owns 95% of FanDuel, while regional casino operator Boyd Gaming (NYSE: BYD ) controls the other 5%. These factors highlight the potential attractiveness of the New York Stock Exchange as a primary listing location for Flutter.
"Since February 2023, management has worked extensively with existing and potential U.S. investors, as well as existing shareholders around the world. The feedback received was very supportive of moving Flutter's primary listing to the United States," the statement said. “As a result, the Board is convinced that the New York Stock Exchange is now the best location for Flutter’s initial listing and that the transition should occur as soon as possible. "The proposal will be presented to shareholders as a special resolution at the 2024 Annual General Meeting of Shareholders on May 1, 2024. Subject to shareholder approval, the transition is expected to be effective by the end of the second quarter/early of the third quarter."
Flutter's listing on the New York Stock Exchange could make it eligible for inclusion in more U.S.-focused stock indexes. However, it remains to be seen whether the stock will join the S&P 500, an index typically reserved for U.S. companies. Flutter has a market capitalization of $36.54 billion, easily meeting the S&P 500's market capitalization requirements, and its parent company FanDuel is currently the second-largest gaming stock trader in the United States, behind Las Vegas Sands Corp. :LVS).
More Benefits of Flutter
In addition to inclusion in the index, Flutter will also receive additional benefits by having the New York Stock Exchange as its primary listing location.
This includes strengthening the profile of the stock, improving liquidity and broadening the audience of potential investors - both professional and retail.
As FanDuel's parent company noted, its U.S. listing would also provide access to "deeper capital markets," suggesting it could raise cash more efficiently when needed than if it wasn't traded on traditional U.S. exchanges.
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Source: www.casino.org
