Flutter commences trading on the NYSE. Proposed transition of primary listing to US.
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The commencement of trading for Flutter's ordinary shares on the New York Stock Exchange represents a significant strategic move for the company. By transitioning to a primary listing on the NYSE, Flutter is tapping into one of the world's largest capital markets. This is likely to increase the liquidity of its shares, as the NYSE's vast investor base provides a deeper pool of potential buyers and sellers. Additionally, the move aligns with Flutter's operational focus, particularly given FanDuel's leading position in the US market.
From a financial perspective, access to deeper capital markets in the US may facilitate future capital raises at potentially more favorable terms. This could support the company's growth initiatives, including expansion into new markets or technological investments. The enhanced profile in the US might also serve as a catalyst for increased analyst coverage and investor interest, potentially leading to a re-rating of the stock.
Flutter's decision to seek a primary listing on the NYSE can be seen as a strategic endeavor to better position itself within the rapidly growing US sports betting and online gaming industry. The US market is expected to continue expanding and being listed on a US exchange could provide Flutter with increased credibility and visibility among US investors and stakeholders. This move could also facilitate the recruitment and retention of US talent, as it underscores the company's commitment to the US market.
Moreover, the inclusion in major US indices, which is contingent on meeting specific criteria including a US primary listing, could lead to mandatory inclusion by index-tracking funds. This would automatically increase the demand for Flutter's shares, potentially leading to price appreciation. Additionally, the dual-listing approach maintains exposure to European investors, mitigating the risk of alienating its existing investor base.
The regulatory implications of moving a primary listing to the NYSE involve a complex set of compliance requirements with both US and UK regulatory bodies. Flutter's intention to retain a secondary listing on the London Stock Exchange ensures continued adherence to UK listing rules, while the primary NYSE listing will necessitate compliance with the Securities and Exchange Commission (SEC) regulations and NYSE listing standards. This dual-listing structure requires careful navigation of the regulatory landscape to avoid potential conflicts and ensure transparency for shareholders.
The proposal to move the primary listing, subject to shareholder approval at the AGM, demonstrates due diligence and respect for shareholder rights. The transition process, expected to be completed in late Q2/early Q3, will require careful management to ensure a smooth transition and minimize any potential disruption to share trading and corporate governance practices.
Trading to commence on NYSE
Flutter also confirms that the cancellation of the secondary listing of the Company's ordinary shares on Euronext Dublin took effect at 08.00 GMT today. Flutter retains its premium listing on the London Stock Exchange ("LSE") and its ordinary shares continue to trade on the Main Market of the LSE (ISIN: IE00BWT6H894).
Flutter's shares will trade on the NYSE under the ticker symbol: "FLUT" (CUSIP No.: G3643J 108) and will trade on the LSE under its existing ticker symbol: "FLTR".
Proposal to move primary listing to the NYSE
As outlined in February 2023, the Board believes listing on the NYSE will unlock long-term strategic and capital market benefits by:
- Enhancing the Group's profile in the US
- Better enabling the recruitment and retention of US talent
- Giving the Group access to much deeper capital markets, and to new US domestic investors
- Providing greater overall liquidity in Flutter shares
- Giving optionality to pursue a primary listing in the US - one of the criteria for access to important US indices.
Since February 2023, management has engaged widely with US investors, existing and potential, along with existing shareholders globally. The feedback received has been very supportive of moving Flutter's primary listing to the US.
As a result, the Board believes that the NYSE is now the optimal location for Flutter's primary listing of its shares, and that the transition should be made as soon as practicable. This proposal will be put to shareholders as a Special Resolution at the 2024 AGM on 1 May 2024. Subject to shareholder approval, the transition is expected to become effective in late Q2/early Q3.
Following transition, the Board intends to retain Flutter's
Peter Jackson, Chief Executive, commented:
"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."
Enquiries
Company Secretary: Cosec@flutter.com
Investor Relations: Investor.relations@flutter.com
Press: Corporatemedia@flutter.com
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SOURCE Flutter Entertainment
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