Allwyn Considering Options for Secondary Listing in London or New York

Allwyn is currently considering options for its secondary listing. In a discussion with iGB after the company’s Q1 earnings report, CFO Kenneth Morton noted that both London and New York are appealing choices, given the company’s substantial operations in Europe, particularly the UK, and the US. Morton stated, "We still plan to do this and, at the same time, we want to make sure that we do it in a way that’s going to secure the biggest possible benefits for our shareholders." The company first revealed its intention to pursue a secondary global market listing as part of its €16 billion merger with Greek lottery giant OPAP in October. The merger was completed earlier this year, following a shareholder vote in February that showed strong backing for the deal among those who participated. Morton emphasized the advantages they seek from the listing, including enhanced liquidity and attracting additional investors and analysts. He stated, "We’re in a nice position where there are several good options, realistically, we’re probably talking about New York or London. It’s more a question of where we’ll get the maximum benefit." He acknowledged that the company has recently been busy with the complexities of the OPAP transaction, so finalizing the listing remains the next priority. In June, Allwyn reported an 8% increase in total revenue for Q1, reaching €2.39 billion, with net revenue rising 21% year-on-year to €1.2 billion. As part of the merger, Allwyn assumed OPAP's listing on the Athens Stock Exchange, where OPAP currently has a share price of €13.86. At the time of the merger announcement, Allwyn CEO Robert Chvátal reassured investors that the Athens listing would not involve new equity issuance and that the free float would remain stable. M&A advisors have indicated that the merger and the potential secondary listing could position the operator for further acquisitions. Paul Richardson from Partis Solutions projected a six- to nine-month timeline for a possible US listing, but emphasized that the group must first demonstrate effective execution of its business model and deliver the anticipated benefits prior to pursuing an IPO abroad. Although a definitive decision on the market for the secondary listing has yet to be made, recent developments—specifically Flutter’s closure of its secondary listing on the London Stock Exchange on June 12—could sway Allwyn’s choice. Flutter attributed its withdrawal to persistently low trading volumes and the escalating costs and complexities associated with a dual listing, which were mentioned in the company's Q1 results back on May 7. The London Stock Exchange has experienced a decline, with up to 88 companies having delisted or moved their primary listings away in 2024. Bloomberg data indicated that London dropped to 20th in global IPO rankings in 2024, with only 18 companies conducting listings that year. Businesses often cite the benefits of deeper capital markets and enhanced liquidity as reasons for transitioning to US exchanges. Additionally, Morton highlighted that Allwyn’s lottery background offers a buffer against tax hikes affecting other gaming operators across Europe, particularly in iGaming and sports betting markets. He referenced a €14 million impact from recent tax increases in Austria, noting, "The Austria tax increase came in halfway through last year; it was not a standalone increase, there were increases across a load of sectors." He highlighted the lottery sector’s relative tax stability, explaining that changes to tax rates are more complicated for governments to implement. Morton also observed a clear trend in several of Allwyn’s markets toward stricter regulations on illegal gambling, stating, "It’s definitely to our benefit. In our position as an incumbent, the regulation can be favourable if it helps to limit the market share of illegals."