Flutter Entertainment, parent company of FanDuel, announced that following consultation with investors regarding the potential of a secondary listing for their stock on the New York Stock Exchange (NYSE) or Nasdaq, the matter will be put to a shareholder vote in April. CEO Peter Jackson confirmed the company’s intention to seek approval from stakeholders next month.
The Dublin-based firm has consulted with shareholders representing a majority of issued shares, and has received overwhelming support for the proposal. Formal resolution to be presented at the upcoming all-group meeting (AGM) on April 27, 2023.
Flutter currently holds a 95% stake in FanDuel, the largest online sportsbook operator in the US, with the remaining 5% held by Las Vegas-based Boyd Gaming. Should a specified percentage of shareholders approve the listing, it could take place as early as the fourth quarter of the year. A successful vote requires the approval of 75% of those in attendance, either in person or by proxy.
Analysts are optimistic that the listing will eliminate the conglomerate discount currently affecting the stock, and open the door for more efficient fundraising via debt and equity sales. Furthermore, the move could also provide a significant boost to FanDuel spin-off speculation, as the business may be more appropriately valued in the US. Moreover, investors may be more likely to keep the sportsbook operator within the parent company due to its dominant market share and promising profitability outlook for 2023.
