Yum China is expected to raise £1.68 billion from its secondary listing in Hong Kong.
The fast food restaurant operator will value its shares at 40.33 pounds sterling.
Yum China brought Taco Bell to Beijing in early August this year.
Anonymous sources confirmed on Friday that Yum China (NYSE: YUMC) is interested in a listing on the Hong Kong Stock Exchange. The sources indicate that the company will list its shares at £40.33 sterling and expects to raise a total of £1.68 billion through its second listing in Hong Kong.
The fast food restaurant company, the sources say, plans to sell a total of 41.91 million shares through its Hong Kong listing. The price per share they highlighted represents a discount of 4.8% from the price at which the shares listed on the U.S. stock exchange Yum’s closed the regular meeting on Thursday.
Yum China brought Taco Bell to Beijing in August
Yum China operates prominent fast food chains in China, including KFC and Pizza Hut. In August, it also brought Taco Bell to Beijing. The company waived an official declaration at that time.
In the league of second listings, Yum’s listing in Hong Kong will be the third largest for the city in 2020 at £1.68 billion.
In view of the increasing tensions between Washington and Beijing, a number of prominent Chinese companies have decided in recent months to list near their home country. JD.com went public in Hong Kong in June. Including the total number of shares, the technology giant raised a total of £3.34 billion from its secondary listing.
NetEase was also listed on the Hong Kong Stock Exchange in June, a secondary listing that raised a total of £2.35 billion. China Bohai Bank launched its IPO in Hong Kong in July, raising £1.55 billion.
According to Refinitiv, activities in the equity capital market resulting from secondary listings and IPOs in Hong Kong have so far been valued at £15.43 billion before the listing of yum in 2020. In the same period last year, the activity was valued at a much lower £8.21 billion.
Yum China’s performance on the New York Stock Exchange
Yum China’s NYSE-listed shares opened Friday down more than 2.5% and fell a further 2.5% in the next hour. Including the price action, the fast food restaurant operator is now changing hands at 40.14 pounds per share.
The company reached its lowest point for the year to date of 30 pounds per share in early March when COVID 19 restrictions forced its restaurants to temporarily close. Confused about choosing a stockbroker for online trading? Here is a list of a few trusted brokers to help you make your choice.
At the time of writing this article, the Shanghai-based company has a market capitalization of £15.14 billion and a price-earnings ratio of 40.41.