Paddy Power owner Flutter could list its shares in New York by the end of the year, depending on the outcome of talks with investors.
The rapid growth of US division Fanduel has prompted Dublin-headquartered Flutter to consult shareholders on a possible additional New York listing of its shares.
The Irish betting giant had previously considered floating part of Fanduel itself in New York to cash in on US investors’ enthusiasm for online-betting related stocks.
However, should shareholders back the move, Flutter’s proposal to list shares in the overall group in the US would take precedence over any plan to float part of Fanduel.
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The US business’s importance to the group is growing as individual states continue to legalise online sports betting.
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Flutter’s results are likely to show that Fanduel generated between $2.9 billion and $3.2 billion revenues last year.
This would make it the group’s largest division by turnover, while it is poised to be cashflow-positive from 2023.
Fanduel has a 42 per cent share of the US market and has taken the number one slot in all of the individual states where it has begun trading.
Flutter will begin talks with shareholders immediately and continue consulting through the normal investor roadshows that will follow the publication of its 2022 results on March 2nd.
Depending on feedback, the group could hold an extraordinary general meeting to vote on the US listing proposal, alongside its regular annual shareholders’ meeting in April.
Such a move would require 75 per cent approval from shareholders. If Flutter clears that hurdle, it could list its shares on Wall Street in the final three months of this year.
In a statement, Paddy Power’s owner said the board’s preliminary view was that the move would yield a number of long-term strategic and capital market benefits.
These include boosting Flutter’s US profile, opening access to new capital markets and investors, and greater overall liquidity in its shares.
The listing could also open the way for a primary US listing for the group.
A US listing would not alter the group’s structure and it intends to stay headquartered in the Republic, home to much of its risk management and technology expertise.
Flutter currently has its primary listing in London and a secondary one on the Irish market.
“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,” said Flutter.
“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.”
