Yum China Holdings Inc obtained approval on Friday from the Hong Kong inventory alternate for a secondary itemizing within the metropolis, which can occur as quickly as subsequent week. The corporate is searching for to lift as much as HK$19.6 billion ($2.5 billion) from the itemizing.
The New York-listed firm said in a U.S. regulatory submitting that it plans to promote 41.91 million shares within the providing, at a most provide worth of HK$468 per share. Yum China plans to make use of about 45% of the proceeds to develop its restaurant community, one other 45% on know-how methods, provide chain, meals innovation and “high-quality assets,” whereas the remaining can be spent for working capital and normal company functions.
In June, Bloomberg estimated that the corporate might increase about $2 billion in its Hong Kong itemizing.
Goldman Sachs Group Inc. is the only sponsor of the itemizing, the submitting reveals. Citigroup Inc., CMB Worldwide Capital Ltd. and UBS Group AG are joint world coordinators. ABC Worldwide Holdings Ltd., AMTD Worldwide Inc., BOC Worldwide Holdings Ltd., China Worldwide Capital Corp., CLSA Ltd., HSBC Holdings Plc and ICBC Worldwide Holdings Ltd. function joint book-runners within the deal.
Yum China, which runs franchises within the nation for a sequence of US fast-food corporations, corresponding to KFC, Pizza Hut and Taco Bell, was spun off from Yum! Manufacturers Inc. and listed in New York 4 years in the past. The corporate now operates 10,000 eating places in additional than 1,400 cities throughout China.
The corporate said its income declined 11% 12 months over 12 months to $1.9 billion within the second quarter of 2020. Its shares fell practically 2% after the corporate mentioned a resurgence of COVID-19 instances in some areas of China affected its second-quarter outcomes.
Hong Kong Exchanges & Clearing Ltd. (HKEX) reported earlier document income for the primary six months of the 12 months as a lot of Chinese language corporations depart the US market and search listings within the metropolis. The alternate mentioned its internet revenue rose 1% to a document HK$5.23 billion ($674 million), or HK$4.15 per share within the first half of 2020, beating analysts’ estimates of HK$4.9 billion in a Bloomberg ballot. It additionally reached a document income of HK$8.78 billion, up 2% 12 months on 12 months.
Chinese language e-commerce large JD.com raised $3.87 billion in its Hong Kong secondary itemizing in June, town’s greatest to this point this 12 months.