Global gaming behemoth Flutter Entertainment (OTC:PDYPY) is entertaining the notion of listing its shares in the US as their American business continues to flourish.
The Flutter logo featured in an investor deck. The organization is mulling over listing shares on the US market. (Image: Flutter Entertainment)
Headquartered in Dublin, Flutter owns 95% of FanDuel, the top online sportsbook in the US. In a communication issued through its investor relations team today, Flutter highlighted the escalating importance of FanDuel and the potential perks of listing in the US.
“It is projected that this pattern will persist, with FanDuel becoming the Group’s largest source of income and a growing portion of its overall value,” the statement read. “Keeping this in mind, the Board has formed a preliminary view that a supplemental US listing of Flutter’s common shares will yield a variety of long-term strategic and capital market advantages.”
Flutter shares are available for purchase in the US, however, it is on an over-the-counter basis, which means the audience of both professional and retail investors in the states engaged with the stock is not as large as it would be if the name traded on the Nasdaq or the New York Stock Exchange (NYSE). The statement did not mention a preferred US listing venue.
Beneficial Prospects for Flutter in US Listing
At the moment, the Betfair, Sky Bet, Paddy Power parent is a part of the FTSE 100 Index, which is the most extensively monitored gauge of UK stocks, and is one of the most significant components in the MSCI All Capped Ireland Index.
These are certainly remarkable points, however, both lack the advantages and prestige of listing in the US. As stated in the statement, Flutter’s board believes that by listing its shares in the US, the operator will augment its visibility in this country, improve the stock’s overall liquidity and be better able to attract top-tier US personnel.
There are other obvious benefits to a US listing. In addition to enlarging its investor base by trading on the Nasdaq or NYSE, Flutter would gain more access to deeper capital markets. In other words, a US share listing would enable the gaming company to more easily sell shares for cash or tap debt markets, if necessary.
Plus, if the company eventually shifts its primary listing
