Allwyn is considering its options for a secondary market listing following its recent merger with Greek lottery giant OPAP. CFO Kenneth Morton told iGB the company is evaluating both London and New York as potential venues, given its major operations in both Europe, especially the UK, and the US. “We intend to proceed with the listing in a way that maximizes shareholder benefits,” Morton said. The secondary listing forms part of the larger €16 billion merger deal finalized after a voter endorsement earlier this year.
Potential Listing Paths
Allwyn aims to attract increased investor attention and analyst coverage through a secondary listing — a move Morton believes is strategically beneficial. “The question is where we can get the maximum benefit,” he mentioned. The OPAP merger’s complexity had kept the company busy, but the focus now shifts to this strategic decision. New York and London are both strong contenders due to their established financial markets and investor reach. The company’s Q1 results displayed a revenue increase of 8% to €2.39 billion, highlighting growth momentum. Net revenue surged 21% year-on-year to €1.2 billion, further strengthening Allwyn’s financial profile.
Market and Regulatory Considerations
The operator isn’t alone in contemplating market presence shifts. Flutter Entertainment’s recent decision to close its secondary London Stock Exchange listing, citing low trading volumes and growing complexities, could be a cautionary tale for Allwyn. But london’s IPO activity has dipped significantly, with Bloomberg reporting just 18 listings last year, placing it 20th globally. Industry observers note the appeal of US exchanges due to larger capital pools and better liquidity conditions. Yet, specific challenges and opportunities vary by jurisdiction, and Allwyn must weigh these before proceeding with an IPO abroad.
Risks and Strategic Moves
Not all outcomes are predictable. Morton highlighted Allwyn’s lottery business as relatively shielded from the European tax hikes impacting other gambling sectors. For instance, Austria’s tax hike cost the firm €14 million last year, but Morton emphasized the lottery sector’s tax stability as a protective factor. Looking ahead, Morton also noted a regulatory shift towards clamping down on illegal gambling, which could play to Allwyn’s advantage. “As an incumbent, favorable regulation can help limit illegal market share,” he said. The next steps in Allwyn’s strategy involve solidifying its listing decision. Still, they’re expected to finalize their choice in the coming months, with a potential U.S. listing on the horizon by next year.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
