KFC operator Yum China expected to raise US$2.2 billion in secondary listing in Hong Kong
- The operator of KFC, Pizza Hut and Taco Bell in mainland China is the latest US-listed firm to raise capital in Hong Kong
- Yum China priced its offering at HK$412 a share
Yum China Holdings is set to raise at least HK$17.3 billion (US$2.2 billion) in its secondary offering in Hong Kong pricing its new shares at HK$412, the company said on Friday.
The operator of KFC, Pizza Hut and Taco Bell in the mainland previously said it planned to sell 41.9 million shares. The transaction would represent a sharp 4.9 per cent discount to its closing price of US$55.92 in New York on Thursday. By comparison, NetEase priced its secondary listing in Hong Kong in June at a tight 2 per cent discount to its closing price in the US, while JD.com’s Hong Kong listing was at a 3.9 per cent discount.
In a statement on Friday, Yum China said it granted the underwriters of its international offering an overallotment option to purchase up to an additional 6.3 million shares at the offer price. If the overallotment is fully exercised, the company would raise HK$19.9 billion.
The offering consists of a sale of about 40.2 million shares to international investors and 1.7 million shares to Hong Kong retail investors.
The deal would be the third-largest fundraising on the Hong Kong bourse this year, after blockbuster secondary listings by JD.com and NetEase as part of a “homecoming” trend among US-listed Chinese companies, according to data from Refinitiv. It also ranks ahead of China Bohai Bank’s US$1.78 billion initial public offering, the biggest debut on the Hong Kong stock exchange this year.
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Yum China, which operates about 10,000 restaurants in 1,400 cities and towns in the mainland, spun off from Yum! Brands four years ago.