Yum China, operator of KFC and Pizza Hut, is working with CICC, Goldman on Hong Kong listing as Chinese companies mull return to home market
- The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, according to people familiar with the matter
- The listing could take place as soon as this year, following closely after Alibaba Group Holding’s November listing
Yum China Holdings Inc is working with China International Capital Corp. and Goldman Sachs Inc. on the preparations of a second listing in Hong Kong, fuelling the wave of US-listed Chinese companies returning to a market that is closer to home.
The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, according to people familiar with the matter. The listing could take place as soon as this year, said the people, who asked not to be identified as the information is private.
A successful share sale by New York-listed Yum China would bolster Hong Kong’s push to lure marquee Chinese firms to raise funds in a city that has been shaken by months of pro-democracy protests. It could also be a vote of confidence in the financial hub’s future.
Hong Kong Exchanges & Clearing Ltd. has said it is seeing a spike in inquiries about secondary listings from Chinese companies after Alibaba Group Holding completed its US$13 billion share sale in November. The HKEX is discussing with Chinese technology firms including Trip.com and NetEase for possible listings in the city, people said.
Hong Kong’s key index compiler opens the door for Chinese tech behemoths to join Hang Seng Index
Yum’s plan for Hong Kong follows a move by Hang Seng Indexes Co, compiler of the city’s benchmark Hang Seng Index, to solicit views on the inclusion of companies with primary listing elsewhere and those with unconventional voting structure.
The firm issued a consultation paper on Monday, seeking market feedback on those issues, as well as other matters. It will end on March 13 and results could be known in May, it added.
Citic to trim McDonald’s China stake as ‘Vision 2022’ targets come under pressure amid costs
Yum China was spun off from Louisville, Kentucky-based Yum! Brands in 2016. The unit, which also operates Mongolian hotpot chain Little Sheep as well as Taco Bell in China, had more than 8,900 restaurants across the world’s second-largest economy as of the end of September. It hired about 450,000 people in the country, according to its latest presentation.
The company in August agreed to buy a controlling stake in Huang Ji Huang Group, a Chinese-style simmer pot restaurant operator. Yum China rejected a buyout offer from an investor group led by Hillhouse Capital in 2018, Bloomberg News reported at that time.
Beyonce’s favourite fried chicken is coming to China, with first Popeyes store to open in March
Shares of Yum China have risen 88 per cent since its 2016 debut, outperforming the 60 per cent rise in Dow Jones Industrial Average. IFR reported last week that Yum China is considering a listing in Hong Kong which could raise as much as US$2 billion, citing unidentified people.
Details of Yum China’s proposed offering could still change as deliberations are at an early stage, the people said. A representative for Goldman Sachs declined to comment, while representatives for Yum China and CICC did not respond to requests for comment.
