Flutter Entertainment is to consult with shareholders over plans to carry out an additional listing of its ordinary shares in the US to support its wider growth plans in the country.
In a note to shareholders, Flutter referenced the success of its US-facing FanDuel Group brand, saying that if trends continue as expected, this will become the group’s largest business by both revenue and value.
Flutter said that an additional US listing of its ordinary shares would result in a number of long-term strategic and capital market benefits, as well as support further growth within FanDuel.
The group’s board said the listing would strengthen its profile in the US, better enable the recruitment and retention of talent in the country and grant the group access to deeper capital markets and US domestic investor.
Other potential benefits sounded out by Flutter included greater overall liquidity in Flutter shares and the optionality to pursue, as a second step, a primary US listing, listed as one of the criteria for access to important US indices.
“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,” Flutter said in the shareholder note.
“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.
“The results of the consultation will be announced in due course.”
The proposal comes on the back of Flutter announcing its Q3 results in November, with the group having revealed that the US became its largest market during the period.
US revenue in Q3 amounted to $598m (£492m/€557m), up 114% year-on-year, or 82% on a constant currency basis. This was put down to a 106% rise in sports revenue – comprising sportsbook, exchange, daily fantasy sports, advance deposit wagering and B2B product verticals, while US igaming revenue also climbed 36%.
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