Flutter has launched trading at the New York Stock Exchange in the US today, 29 January. The shares were first listed on this exchange around 2.30pm GMT.
The NYSE now trades the ordinary shares of Flutter under the ticker FLUT.
The launch of Flutter on the NYSE marks the end to its secondary listing at Euronext Dublin. The group stopped trading on the Irish stock exchange last week in preparation for the New York IPO. The group’s plans to list in the US were announced last month.
Flutter, on the other hand, will continue to trade at the London Stock Exchange and will maintain its listing as a premium group on London’s exchange. The group will continue to trade under the FLTR ticker.
Flutter’s CEO Peter Jackson stated that the NYSE listing is a “pivotal moment” for Flutter, as it makes Flutter accessible to US investors. It also allows Flutter to access deeper capital markets.
New York listing for Flutter is “optimal”.
Due to FanDuel’s success, Flutter reported significant growth in the US over the past few years. FanDuel was acquired in May 2018 while it was still operating as a daily fantasy sport operator. Since then, FanDuel is now a leading US sports betting and online gaming provider.
Flutter, in addition to launching on the NYSE today, is also considering a move towards a New York primary listing. The board of Flutter had proposed a move to a New York primary listing at this time last.
Flutter stated that these include an increased profile in the US, and better recruiting and retention of US talents. Access to new investors and deeper capital markets are also highlighted as potential benefits.
Flutter also said that a primary listing at the NYSE will provide greater liquidity for its overall shares.
Flutter stated that “management has been engaging widely since February 2023 with US shareholders, both existing and prospective, as well as existing global shareholders.” The feedback received was very positive in favor of Flutter moving its primary listing to the US.
The board has decided that Flutter should list its primary shares on the NYSE as soon as possible.
The proposal will be presented to the shareholders at 2024 Flutter AGM, on May 1, 2024. The transition will be effective once shareholders approve it. This is likely to happen in the late second quarter or early third quarter.
Flutter continues to be committed to LSE
If this goes as planned, Flutter plans to keep its UK listing in secondary status. Flutter claims that by doing this, it will allow the largest number of investors to continue holding its shares while benefiting from future value.
The price of shares on the LSE has fluctuated since Flutter announced the US listing. LSE shares fell by almost 2,00% at first and currently trade at just 0.89% of today’s open price.
Jackson stated that “we believe an US primary listing would be the most natural place for Flutter, given FanDuel’s position as the #1 provider in the US. This is a market we anticipate will contribute to the highest percentage of profits within the next few years,” Jackson added.
US-led growth is expected in 2023
Flutter published a 2023 trading update earlier this month. The update included additional evidence about its continued growth in the US.
The group revenue in the year to 31 December grew by 25%, to PS9.51bn. This is for Flutter’s financial year 2023. Flutter stated that this was due to a 38% increase in revenues from US operations, which reached PS3,06bn.
US operations accounted for 37.9% all revenues. In constant currencies, US sports revenues increased by 39% while gaming revenue grew 47%. The average number of players at Flutter increased by 38% to over 3.2 millions.
Peter Jackson, Flutter’s CEO, outlined in a call with investors after the report a strategy to achieve success in the US over the next three years. In the last year, he said Flutter wants FanDuel and FanDuel Race to the Finish Line to be completed.
