A significant majority of Flutter shareholders gave “very strong support” to the idea of the parent company of FanDuel stock launching through a secondary US listing.
Talks about a listing in the US are nothing new, with discussions about listing a small piece of FanDuel in the US dating back to 2021. Flutter proved it was serious about a secondary listing for the full company when it announced it would consult shareholders about the idea in February.
Those talks were quite positive, according to a Friday release from Flutter:
“On 14 February 2023 Flutter announced it would be consulting with shareholders on an additional US listing of the Group’s ordinary shares and set out the long-term strategic benefits.
Having consulted widely with shareholders representing a significant majority of Flutter’s issued share capital and received very strong support, the Flutter Board is pleased to announce that a formal resolution will be put to shareholders on this proposal at the forthcoming AGM on 27 April 2023.”
Flutter, FanDuel need 75 percent
At least 75% of shareholders will have to support Flutter’s decision for a secondary listing in the US at the annual meeting in late April.
Should that pass, Flutter will aim to launch the secondary listing during the fourth quarter of this year.
The exact details of what will be up for vote and a shareholder FAQ on the US listing are available on Flutter’s investor relations site.
Upside with FanDuel stock listing
Flutter broke out five key benefits of launching that secondary listing in the US:
- Enhancing Flutter’s profile in the US
- Enabling better recruitment and retention of US workers
- Giving Flutter access to “much deeper capital markets” as well as new US domestic investors
- Opens the possibility for a primary US listing, which would allow Flutter to be listed on prominent US indices
- Providing greater overall liquidity in Flutter shares
While Flutter is an international company with much more than FanDuel under its umbrella, the US market leader is taking over as its revenue pacer. Trading in the US should lift the stock’s volume significantly: Flutter’s daily average volume is under 700,000 while its top competitor, DraftKings, sees 13.5 million in daily average volume.
FanDuel top US sportsbook by share
FanDuel accounts for 50% of US sports betting market share, Flutter said in its fourth-quarter earnings call. That is a 10 percentage point increase from the fourth quarter of 2021, boosted by leading in 15 of its 18 live states.
Profitability is on tap for FanDuel in 2023, management said, simply because of its customers, not from making significant organizational changes. That comes from a few places, including long-time cohorts growing in value and the uptick of same-game parlays.