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Fanduel’s parent company, Flutter, kicked off the week by listing its ordinary shares on the New York Stock Exchange (NYSE). Trading commenced yesterday at 9:30 ET, and the company is now identified on the stock exchange by the ticker symbol FLUT.
Flutter experienced a 1.4% intraday increase in its share value on the first day of trading.
FanDuel emerged as the leading sportsbook in the United States, commanding a 51% market share in net revenue during the fourth quarter of 2023. This performance has attracted the attention of US investors, prompting them to consider acquiring a stake in the international sportsbook.
Chief Executive Officer, Peter Jackson commented in a Flutter Entertainment press release:
“With our NYSE listing effective today, this is a pivotal moment for the Group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets. We believe a US primary listing is the natural home for Flutter given Fanduel’s #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
CEO of Flutter outlines benefits of NYSE listing
During an interview, Peter mentioned that a key motivation behind their move was that one of their biggest investments, FanDuel, is in the US. He emphasized the importance of “high liquidity” as a driving force and highlighted the positive impact of “earned media” they will have access to.
Having extra publicity is always good for business. Hence, this NYSE listing will no doubt elevate Flutter’s position in the industry.
“The main reason that we’ve brought our listing here to the States is really those pull factors, is the fact that we see high levels of liquidity here on the New York Stock Exchange as the number of potential investors I’ve met who are domestic investors in America who want to invest and in the business,” said Peter.
Shareholders give backing to NYSE listing endeavors
Flutter’s board believes that relocating Flutter’s primary share listing to the NYSE represents the most advantageous course of action.
The proposal outlining the move will be presented to shareholders as a special resolution during the annual general meeting scheduled for May 1, 2024. Pending shareholder approval, the envisaged transition is anticipated to take effect in the later part of the second quarter or the early part of the third quarter.
“When we told our shareholders that we were contemplating in getting a secondary listing, we were very clear that our primary listing was also of ultimate aim and we had enormous support from shareholders. 99.99% at our annual general meeting last year for that shift.
So I’m very confident the shareholders will be supportive of Flutter moving its primary listing and the vote on the 1st of May,” Peter disclosed.
Flutter maintains its primary listing on London Stock Exchange
Currently, Flutter still maintains its primary listing on the London Stock Exchange (“LSE”) under the ticker symbol FLTR. However, the board intends to shift it to its secondary listing following Flutter’s NYSE transition.
At the peak of things, Flutter announced yesterday that it successfully terminated the secondary listing of its ordinary shares on Euronext Dublin. Meanwhile, ordinary shares of the company will continue trading on the Main Market of the LSE under the International Securities Identification Number (ISIN) IE00BWT6H894.
Addressing the curiosity of observers regarding whether Flutter plans to launch FanDuel as a separate listing, Peter revealed that it would be advantageous for FanDuel if the listings were not separated.
“They (FanDuel) benefit from what we describe as the flutter edge. And this is where we have, you know, thousands of colleagues across the world who are providing support, technology, and products into the FanDuel business.
It’s what’s made us number one and the opportunities for us to keep growing the business tremendous. So will keep the business together and we’ll keep going from strength to strength,” Peter concluded.
