Dublin bourse seeks stamp duty relief for market aimed at dual Irish-US listings

Euronext Dubin, operator of the Irish stock exchange, has called on the Government to exempt from stamp duty trading on a market aimed at companies with dual Irish-US listings, after Flutter Entertainment became the latest heavyweight company to say it is dropping its Dublin quotation.

“At the moment, an Irish company gets a stamp duty exemption from the Revenue Commissioners for any trading on a US exchange but not for any trading on its home market. It makes no sense to us why Irish taxation policy would incentivise an Irish company to list on a US market but not on its home exchange,” said Euronext Dublin chief executive Daryl Byrne. “This situation is untenable and needs to change.”

Concerns about defections by Irish companies to the US prompted Euronext Dublin to do a lot of work over the summer on its so-called Atlantic securities market (ASM), which was set up almost a decade ago to facilitate companies seeking dual Irish-US listings, but had essentially been dormant ever since.

The exchange has been revising ASM rules to fully align them with those of the US Securities and Exchange Commission – along with other tweaks – in order to pitch this market to Irish companies considering a US listing.

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While the ASM was originally granted a stamp duty exemption when launched, Revenue has in recent months refused to regrant that exemption.

“In light of this we have sought an important amendment to the Finance Bill 2023 as a priority to introduce a stamp duty exemption for the Atlantic securities market,” said Mr Byrne.

Market observers say, however, that there are a number of other factors at play as a number of Irish market heavyweights have either to quit Dublin – or signalled such plans – in recent times. These include deeper liquidity in New York equity markets, the fact that US-listed companies typically trade at a premium to European peers, and the growing reliance of some of the Irish market’s biggest names on the US for earnings.

Paddy Power owner Flutter Entertainment, currently the largest company on Dublin’s Iseq index, said on Thursday it had decided to delist from Euronext Dublin as it plans to add a New York listing in the first quarter of 2024.

CRH, the previous Iseq heavyweight, dropped its Irish quotation in September as part of rejig that saw the building materials group move its main listing from London to New York.

Cardboard box-maker Smurfit Kappa has also recently it plans to get rid of its Irish quotation under a plan to merge with US rival WestRock.