Flutter Investors Approve Primary Listing Move to NYSE
The gaming company's decision to switch its primary listing from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE) was accepted by Flutter Entertainment's (NYSE: FLUT) shareholders on Wednesday.
While Dublin-based Flutter kept its main listing in London during that time, shares of the FanDuel parent company have been trading in New York since late January when the firm discontinued its Euronext listing. The owner of Paddy Power informed investors last month that the company's annual meeting, which was held on Wednesday, would be the time to determine whether to move the primary listing to New York.
"We now anticipate that we will shift our prime listing to the New York Stock Exchange by the end of the month,” said Flutter CEO Peter Jackson in a press briefing yesterday.
He went on to say that the US is Flutter's "natural home."
It Makes Sense for Flutter to Go to NYSE
The gambling startup Flutter cited more liquidity, easier access to cash, and expanding its investor base as justifications for listing its shares on a significant US exchange when it revealed its intentions to do so in New York.
Furthermore, the biggest online sportsbook operator in this nation is FanDuel. As a result, in terms of profitability and revenue, the US is the segment of Flutter's total portfolio that is expanding the fastest.
The reason international businesses like Flutter seek main listings in the US is that doing so may pave the way for their eventual inclusion in the S&P 500 and other widely followed US equity indices. Should Flutter move its principal listing to New York, it would qualify for inclusion in some prestigious domestic equities indexes based on market capitalization and profitability standards.
The principal listing move from London to New York was supported by 98% of shareholders at the operator's annual group meeting. Before the end of this month, the status change might take place.
One more setback for LSE
Flutter is the most recent of many businesses that previously regarded the LSE as their main listing location to change that to New York. The UK-based chip manufacturer Arm Holdings chose to list in New York rather than London when it went public last year.
Since then, a number of well-known UK-based companies have chosen to follow suit. Travel agency Tui followed suit early this year, while building products business CRH did the same last year. A number of other companies who presently list on the LSE are considering relocating to New York.
Global integrated oil giant Shell is reportedly looking into the London-to-New York primary listing switch, which would be the biggest example of that change and a significant setback for the LSE. Wael Sawan, the CEO of Shell, stated last month that the business is looking into ways to reduce the significant price differential with US-based competitors like Chevron and Exxon. One such measure is relocating the primary share listing to New York.
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