Yum China Indicates Price for Hong Kong Stock Offering
04 September 2020 - 4:06PM
Dow Jones News
By Joanne Chiu
China's largest restaurant company is set to raise around US$2.2
billion in a secondary listing.
Yum China Holdings Inc., which operates KFC and Pizza Hut in
mainland China, on Friday guided investors that it plans to price
its Hong Kong stock sale at 412 Hong Kong dollars (US$53.16), a
person familiar with the situation said.
That represents a roughly 5% discount to Yum China's closing
price in New York Thursday, and implies a total deal size of about
US$2.2 billion. Follow-on share offerings are usually priced
slightly cheaper than existing shares.
The company will announce the final offer price before U.S.
markets open Friday, the person said. The guidance technically
applies to shares being sold to institutional investors, but in
practice a small slice of the deal that is reserved for individual
investors is likely to be sold at the same price.
Yum China's stock sale, which is led by Goldman Sachs, would add
to a series of recent secondary listings in Hong Kong by Chinese
companies whose shares are already traded in New York, such as
Alibaba Group Holding Ltd., JD.com Inc. and NetEase Inc.
The company on Monday said it plans to issue about 41.91 million
to investors before a market debut on the Hong Kong stock exchange
under the stock ticker 9987.HK on Sept.10.
Write to Joanne Chiu at joanne.chiu@wsj.com
(END) Dow Jones Newswires
September 04, 2020 01:51 ET (05:51 GMT)
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