News

Yum China to generate up to $2.56M with Hong Kong offering

September 4, 2020

China's biggest restaurant company by last year's sales, Yum China Holdings Inc., has set the final price on 41,910,700 shares of common stock at $412 in Hong Kong dollars ($53.16USD) The price holds for both the international stock offering and the Hong Kong public offering, a news release said.

Subject to approval from The Stock Exchange of Hong Kong Limited, shares will begin trading in Hong Kong on Sept. 10 under the stock code 9987. The offering is expected to close on the same day.

The company's shares will continue to be listed and traded on the New York Stock Exchange and will be fully fungible with Hong Kong-listed shares. International underwriters were granted an over-allotment option for the next 30 days of up to an additional 6,286,600 shares, or not more than 15% of the number of shares initially available under the offering, at the offer price.

Gross proceeds before expense and fee deductions are expected to be approximately $2.228 million USD (HK$17,267 million) or $2.562 million USD (HK$19,857 million) if the over-allotment option is used.

Proceeds will be used to "deepen" the company's restaurant network, the release said, as well as enhance digitalization, supply chain, food innovation, value proposition and high-quality assets.

Yum China Holdings. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, Pizza Hut and Taco Bell, while Yum China also owns the Little Sheep, Huang Ji Huang, East Dawning and COFFii & JOY concepts outright. Yum China also partners with Lavazza to delelop the coffee shop concept in China. The company had 9,954 restaurants in more than 1,400 cities at the end of June 2020.