Yum China Holdings, the parent of the Pizza Hut, KFC and other restaurant chains in Mainland China, has confirmed it will list on the Hong Kong stock exchange, raising up to US$2.5 billion. The company’s stock will continue to be listed on the New York Stock Exchange, with Hong Kong a secondary listing.
In a statement, the company said it would use the net proceeds from the listing to “expand and deepen” its restaurant network, and to invest in digitalisation and supply chain, food innovation and value proposition, and high-quality assets.
Yum China is the nation’s largest restaurant operator based on last year’s sales figures and as at the end of June it had 9954 restaurants in more than 1400 cities and towns.
The exclusive licensee of US part-parent Yum! Brands’ quick service restaurant brands, which also includes Taco Bell, the company has also invested in local chains Little Sheep, Huang Ji Huang, East Dawning and Coffii & Joy. Yum China is also partnering with Lavazza to explore and develop the Lavazza coffee shop concept in China.
In its announcement, the company said it would offer 41,910,700 new shares of common stock at an offer price of not more than HKD468, based on the closing price of the stock on the last trading day on or before Friday (September 4) in New York. The shares will be listed on the Hong Kong exchange under the stock code 9987.
The offer opened today and will close at noon Friday, Hong Kong time.
Goldman Sachs (Asia) is the sponsor, joint global coordinator, joint bookrunner and joint lead manager for the offering, while Citigroup Global Markets Asia, CMB International Capital Corporation and UBS Group are acting as joint global coordinators, joint bookrunners and joint lead managers.