Flutter Entertainment shareholders approve New York relocation
Flutter Entertainment is set to relocate its primary listing to the New York Stock Exchange (NYSE) after 98 per cent of its shareholders backed the move.
Flutter is a major gambling operator that owns heavyweight brands including Paddy Power, Betfair, Sky Bet, Poker Stars, and Fan Duel.
The gambling giant was delisted from the Irish Stock Exchange in January to streamline operations and minimize regulatory complexities. Consequently, it looked to have only two listings in New York and London. It was scheduled to be listed on the NYSE in January before the decision was made to move the main base away from the U.K.
Ding, ding, ding
That’s the sound of the @NYSE Opening Bell as Flutter is officially LISTED.
We’re #ChangingTheGame and today marks another jump forward in our exciting growth journey.
Congrats Flutter Family!
More here: https://t.co/Gen6wEwBYR#FLutterNYSEListed $FLUT pic.twitter.com/JwhDoSIMDJ
— Flutter plc (@FlutterPLC) January 29, 2024
However, the betting operator held its AGM in Dublin on Wednesday (May 1) and according to several reports, shareholders overwhelmingly voted in favor of the move.
The relocation from London to the NYSE is expected to be finalized by the end of May. According to the Annual General Meeting, this shift mirrors “the company’s growth trajectory and changing dynamics of global markets.” It will be removed from London’s FTSE indices.
In March, Flutter announced its financial results for the fiscal year ending December 31, 2023, seeing an increase in revenue to $11.79 billion, marking a 24.6 per cent growth compared to the previous year.
What does the Flutter move to the NYSE mean?
Analysts have said the change will have benefits for Flutter. According to investors at Waterhouse VC, a “U.S. listing improves access to the country’s capital pools and makes it easier to offer share incentives to American employees.”
Writing on X, it added that U.S. equities “have long been valued at a premium compared to other global equity markets.” It is also reportedly the firm’s largest revenue contributor.
2) A US listing improves access to US capital pools and makes it easier to offer share incentives to American employees.
3) US equities have long been valued at a premium compared to other global equity markets.Flutter listed on the NYSE on January 29th this year.
— Waterhouse VC (@WaterhouseVC) April 18, 2024
Stocks listed on the NYSE normally trade at a much higher valuation than those listed in London. Investors are also likely to extend more capital to a company once it has been established for a few years in the market, which is what Flutter and other companies are trying to do at the moment.
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