Flutter Eyes will be listed on the New York Stock Exchange on January 29 and will be removed from the EUROSTOXX index
Flutter Entertainment (OTC: PDYPY ) told investors it plans to list its shares on the New York Stock Exchange (NYSE) on Monday, January 29.
This announcement is made following the filing of a 20-F with the U.S. Securities and Exchange Commission (SEC). FanDuel’s parent company is expected to list in the U.S. under the ticker “FLUT.” With the New York listing, Flutter shares will be delisted from Euronext Dublin, the gaming company's parent exchange. This will result in the stock being removed from the EUROSTOXX index.
As previously communicated, Flutter believes it is appropriate to maintain only two listings to minimize regulatory complexity and has informed Euronext Dublin of its intention to maintain its secondary listing on Euronext Dublin from 2024 Effective from 8:00 a.m. (GMT) on Monday, 29 January 2019. "It said in a statement. "The last day of trading for Flutter ordinary shares on Euronext Dublin will be Tuesday, January 23, 2024. Trading will be suspended after the close of the day to allow for the settlement of outstanding trades and repositioning orders before the U.S. listing becomes effective. "
Flutter owns 95% of FanDuel, with the other 5% controlled by Boyd Gaming (NYSE: BYD ).
Opportunities to evaluate the Flutter US Index
Flutter told investors it would maintain its listing on the London Stock Exchange (LSE), thereby retaining membership in the FTSE 100 index, a widely used index of UK-listed stocks.
Flutter had a market capitalization of $28.59 billion as of today's close, and if it listed in New York today, it would become the second-largest gaming stock in the U.S., behind Las Vegas Sands (NYSE: LVS ). By this metric, FanDuel's parent company is more than twice the size of MGM Resorts International (NYSE: MGM ) and more than three times the size of Wynn Resorts (NASDAQ: WYNN ).
However, as Flutter is still headquartered in Dublin, its U.S.-listed shares are not eligible for inclusion in the S&P 500 or any other index maintained by S&P Dow Jones. This could limit the number of benchmarks, index funds and exchange-traded funds (ETFs) that can buy Flutter stock.
If the gaming company chooses to list on Nasdaq, the New York Stock Exchange, it will be eligible for future inclusion in the Nasdaq 100 Index (NDX), however, NDX components must be Nasdaq-listed companies.
Listing in the US makes sense for Flutter
Listing in New York is a practical move for Flutter, as the United States is the fastest-growing major market in which the operator operates. Together, FanDuel and DraftKings (NASDAQ: DKNG ) form an online sports betting duopoly. FanDuel is also one of the largest internet casino operators in the country.
By listing in the U.S., Flutter opens itself up to a wider investor base – both professional and individual. Many sophisticated investors won't buy OTC shares due to internal rules, suggesting a listing on the New York Stock Exchange could spark a wave of purchases of Flutter shares.
Additionally, if the operator spins off FanDuel at some point, the stock will be eligible for inclusion in the S&P Index since the company is headquartered in the United States. Flutter said such a deal would give way to a U.S. listing of the parent company.
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Source: www.casino.org
