Flutter considers going public in the US to capitalise on FanDuel’s dominance
FTSE 100 giant eyeing additional float in the US as it confirms potential to list solely across the pond in the future
Flutter Entertainment is set to consult its shareholders regarding a potential additional US listing as the operator looks toward several “long-term strategic and capital market benefits”.
Releasing a statement to the markets, the Dublin-headquartered giant confirmed that following on from the ongoing success of its US-facing sports betting, casino and DFS brand, FanDuel, internal discussions would now take place regarding a new public listing in the US.
FanDuel has emerged as the sports betting market leader in the US since the fall of PASPA in 2018, with the operator set to achieve profitability in 2023 – marking a significant milestone in the history of US online sports betting.
FanDuel is Flutter’s largest business by revenue and continues to represent a growing proportion of the parent company’s value as it faces regulatory headwinds in the UK and Europe.
Flutter, which has a market cap today of £23bn, confirmed it has now reached a “preliminary view” that a further listing in the US of the company’s ordinary shares would bring about a swathe of benefits.
These include enhancing the group’s profile in the US, the ability to better recruit and retain US talent, and provide greater overall liquidity in Flutter shares.
The firm also noted a US listing would provide the group with access to new US domestic investors, deeper capital markets and the option to pursue a primary US listing as a second step.
The group expects the consultations with shareholders to begin immediately, with the results to be relayed in due course.
In a statement, Flutter said: “The Flutter board regularly evaluates how best to position the group to deliver its strategy in the interests of shareholders. One of the matters the board has been assessing for some time is the group’s listing structure.
“The capital markets day held in New York on 16 November 2022 highlighted the growing importance of FanDuel to the group as a whole.
“This trend is expected to continue, with FanDuel becoming the group’s largest business by revenue and an ever-greater proportion of its overall value.
“In this context, the board has reached a preliminary view that an additional US listing of Flutter’s ordinary shares will yield a number of long-term strategic and capital market benefits.
“The board appreciates that this is an important topic for shareholders and intends to consult extensively before deciding whether to put forward a formal resolution for approval.
“The group expects to start this consultation immediately. In the event that there is broad shareholder support for an additional US listing, this would take precedence over any plans to list a small shareholding in FanDuel,” Flutter concluded.
The news sent Flutter’s share price rising by 1.83% in early trading to £127.75.