Flutter Transatlantic Shift: Relocating Primary Listing from London to New York
On this Monday, Flutter, the Dublin-based online betting company, disclosed its proposal to shift its primary share listing from London to New York, set for consideration at the upcoming May annual general meeting. Conditional on shareholders’ approval, this move is projected to take effect in the late second quarter or early third quarter, with Flutter intending to uphold its London listing as secondary.
Flutter’s shares made their inaugural appearance on the New York Stock Exchange on Monday, experiencing a 1.2% upswing to reach $207.47 per share. Simultaneously, the company annulled its secondary listing in Dublin. The prevailing trend sees companies increasingly favoring U.S. markets for their listings, buoyed by the prospect of achieving more favorable valuations.
In recent times, prominent Dublin-based entities like CRH and Smurfit Kappa have either departed from or revealed plans to exit the Irish Stock Exchange, opting instead for U.S. markets. Likewise, the Swiss building materials giant Holcim (HOLN.S) disclosed its strategic decision to divest 100% of its North American operations through a New York flotation, potentially valuing the enterprise at $30 billion.
Flutter’s CEO, Peter Jackson, defended the relocation, asserting, “We believe a U.S. primary listing is the natural home for Flutter given Fanduel’s #1 position in the U.S., a market which we expect to contribute the largest proportion of profits in the near future.” This strategic move aligns with a broader pattern, as London grapples with challenges in attracting initial public offerings (IPOs) and retaining listed companies, stirring concerns about the city’s diminished allure, partly attributed to BREXIT.
In a marginally positive development, on Monday, Air Astana from Kazakhstan defined the price range for its joint stock exchange listings in the UK and Astana, targeting a market valuation ranging between $770 million and $962 million.
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