Posted on: December 8, 2023, 04:43h.
Last updated on: December 8, 2023, 04:43h.
Flutter Entertainment (OTC: PDYPY) told investors it’s eyeing Monday, Jan. 29 for its debut on the New York Stock Exchange (NYSE).
That announcement follows a 20-F filing with the Securities and Exchange Commission (SEC). It’s expected that the FanDuel parent will trade in the US under the ticker “FLUT.” In conjunction with the New York listing, Flutter stock will be delisted from Euronext Dublin, the exchange in the gaming company’s home city. That will result in the stock being removed from the EUROSTOXX Index.
As previously communicated, Flutter believes that it is appropriate to maintain just two listings to minimise regulatory complexities and has notified Euronext Dublin of its intention to cancel its secondary listing on Euronext Dublin with effect from 8.00 am (GMT) on Monday, 29 January 2024,” according to a statement. “The last day of trading of Flutter’s ordinary shares on Euronext Dublin will be Tuesday 23 January 2024, with trading suspended from close of business on that day to allow for the settlement of pending trades and repositioning instructions, in advance of effectiveness of the US listing.”
Flutter owns 95% of FanDuel with the other 5% being controlled by Boyd Gaming (NYSE: BYD).
Assessing Flutter US Index Possibilities
Flutter told investors that it will maintain its listing on the London Stock Exchange (LSE) and thus retain membership in the FTSE 100 Index — a widely followed gauge of UK-listed equities.
With a market capitalization of $28.59 billion as of today’s close, Flutter would be the second-largest gaming stock in the US if it listed in New York today, trailing only Las Vegas Sands (NYSE: LVS). By that metric, the FanDuel parent is more than double the size of MGM Resorts International (NYSE: MGM) and more than triple the size of Wynn Resorts (NASDAQ: WYNN).
However, because Flutter remains based in Dublin, its US-listed shares will not be eligible for inclusion in the S&P 500 or any other index maintained by S&P Dow Jones. That could limit the number of benchmarks, index funds and exchange traded funds (ETFs) that buy Flutter shares.
Had the gaming company opted for a Nasdaq listing over NYSE, it would have been eligible for inclusion in the Nasdaq-100 Index (NDX) in the future, but NDX components must be Nasdaq-listed names.
US Listing Makes Sense for Flutter
Listing in New York is a practical move for Flutter because the US is the fastest-growing major market to which the operator has exposure. Here, FanDuel is, along with DraftKings (NASDAQ: DKNG), part of an online sports betting duopoly. FanDuel is also one of the largest internet casino operators in this country.
By listing in the US, Flutter taps into a broader audience of investors — both professional and retail. Many professional investors don’t buy stocks that trade over-the-counter due to internal regulations, indicating the NYSE listing could unleash a wave of buying for Flutter shares.
Additionally, should the operator eventually decide to spin-off FanDuel, that stock would be eligible for inclusion in S&P indexes because the company is based in the US. Flutter previously said such a transaction will take a backseat to the parent’s US listing.