Yum China confirms US$2.5 billion Hong Kong listing
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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 digitalization 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 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 include 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.
Questions & Answers
Q.What will Yum China use the money raised from the Hong Kong listing for?
What will Yum China use the money raised from the Hong Kong listing for?
The company intends to use the net proceeds to expand its restaurant network, invest in digitalization and supply chain, and fund food innovation, value proposition, and high-quality assets.
Q.What is Yum China's current operational scale in Mainland China?
What is Yum China's current operational scale in Mainland China?
Yum China is the largest restaurant operator in the nation by last year's sales. As of late June, it managed 9954 restaurants across more than 1400 cities and towns.
Q.Which other restaurant brands are part of Yum China's portfolio or partnerships?
Which other restaurant brands are part of Yum China's portfolio or partnerships?
Beyond its core KFC and Pizza Hut brands, Yum China also operates Taco Bell. It has invested in Little Sheep, Huang Ji Huang, East Dawning, Coffii & Joy, and is partnering with Lavazza for coffee shops.
Q.Which financial institutions are involved in managing the Hong Kong share offering?
Which financial institutions are involved in managing the Hong Kong share offering?
Goldman Sachs (Asia) is the sponsor and a joint lead manager. Citigroup Global Markets Asia, CMB International Capital Corporation, and UBS Group are also joint global coordinators, bookrunners, and lead managers.