Now that FanDuel stock is trading in New York, parent company Flutter is eyeing the New York Stock Exchange for its primary listing.
Flutter made the announcement in a press release issued shortly before FLUT began trading in New York on Monday. FanDuel celebrity promoter Rob Gronkowski capped the event by spiking a football on Wall Street dressed in a FanDuel football uniform.
Now that the US secondary listing is live, it is time for to move the primary listing from London to New York, management said. If given shareholder approval, FLUT could become the primary listing by late Q2 or early Q3.
“With our NYSE listing effective today, this is a pivotal moment for the Group as we make Flutter more accessible to US based investors and gain access to deeper capital markets,” CEO Peter Jackson said. “We believe a US primary listing is the natural home for Flutter given FanDuel’s #1 position in the US, a market which we expect to contribute the largest proportion of profits in the near future.”
How did FanDuel stock perform today?
FLUT closed up 0.78% to $206.59 Monday on volume of 390,648, while the primary listing in London closed down 0.92% to £161.75 with volume of 965,160. Flutter sees an average daily volume of 849,998 in London.
The stock opened at $205 and quickly shot to $212 minutes later before settling back closer to the initial price.
That trading volume was not huge is not surprising. Flutter expects the US listing to bring more liquidity to the stock but US investment firms need to time to get to know the company as a whole.
Benefits of Flutter stock primary US listing
Flutter announced in February 2023 that it would begin conversations with shareholders for an additional listing in New York. Before that, the company mentioned possibly listing a portion of FanDuel in the US.
Those benefits included growing the company’s profile in the US, improving liquidity for the stock, and adding new US investors and talent. Mentioned last was the optionality to have a primary listing in the US, which is a key step in being included in US indices.
“Since February 2023, management has engaged widely with US investors, existing and potential, along with existing shareholders globally,” Monday’s release said. “The feedback received has been very supportive of moving Flutter’s primary listing to the US.
“As a result, the Board believes that the NYSE is now the optimal location for Flutter’s primary listing of its shares, and that the transition should be made as soon as practicable. This proposal will be put to shareholders as a Special Resolution at the 2024 AGM on 1 May 2024.”