London (AFP) - Online betting giant Flutter this week took the first step to switch its main listing from London to New York, in a fresh post-Brexit blow to the City finance district.
Flutter, which launched a secondary US listing on Monday, said its board "believes that the New York Stock Exchange is now the optimal location for Flutter's primary listing of its shares".
The firm, which is based in Dublin but currently has its main listing on the London Stock Exchange, will put the proposal to shareholders at the next annual general meeting on May 1, it said in a statement.
The City of London has sought to defend its status as a preeminent global finance hub after Britain's departure from the European Union in early 2021.
Yet Flutter's New York switch, which could become effective at the end of the second quarter or start of the third quarter, came as no surprise to analysts.
'Another body blow'
"Another day, another body blow to London with Flutter confirming that it will shift its primary listing location from London to New York," noted Neil Shah, research director at Edison Group.
"That Flutter has upgraded its love affair with the US markets to a fully fledged relationship is no surprise given that its US operations are a significant part of its business and the soon-to-be primary source of its profits."
US online gambling has boomed after the country's Supreme Court in 2018 lifted a ban on sports betting.
"The US market... is deregulating and looks to offer greater growth potential than the UK and some European markets where the gambling regulations are becoming tighter, not looser," noted AJ Bell investment director Russ Mould.
Flutter's sales surged 38 percent in the United States last year, compared with a 24 percent increase across the group.
The secondary New York listing "is a pivotal moment... as we make Flutter more accessible to US-based investors and gain access to deeper capital markets", said chief executive Peter Jackson.
'Jilted partner'
Flutter would become the latest corporate departure from the British capital, which has since Brexit faced fierce competition from the likes of Amsterdam, Frankfurt and New York.
British chip designer Arm, whose semiconductors power most of the world's smartphones and which is owned by Japan's SoftBank, launched a blockbuster initial public offering in New York in September.
Building materials giant CRH also switched its primary market listing to New York from London last year.
Soda ash producing giant WE Soda last year scrapped its plan to list in the British capital, while German travel firm TUI plans to end its London listing in favour of Frankfurt.
"London's role as jilted partner continues, with yet another company leaving its embrace on the promise of higher valuations and deeper pools of capital in the US," added Shah.
"That... follows a very worrying and very public trend of listed companies losing trust in the City, which must prompt the government to turbo-charge its listing reforms."
Britain's Financial Conduct Authority regulator has sought to reform rules in a bid to attract more IPOs.
The government has also launched its own reforms in an attempt to stimulate growth in the financial sector.
The City of London Corporation, which oversees the Square Mile finance district, conceded last week that London faced "a decrease in capital markets activity and assets under management" -- but insisted it remained "the top global financial centre" ahead of New York.
However, IPO volumes tumbled 36 percent in the United Kingdom and Ireland last year, according to a recent study from financial services giant EY. That compared with an overall eight percent decline globally.
