Yum China Holdings, Inc., China’s largest restaurant company in terms of 2019 system sales, announced the launch of its Hong Kong public offering, which forms part of the global offering of 41,910,700 new shares of common stock and the listing of its shares of common stock on the main board of The Stock Exchange of Hong Kong Limited.
SEE ALSO : Yum China opens Taco Bell store in Beijing
The company’s shares will continue to be listed and traded on the New York Stock Exchange. Upon the secondary listing in Hong Kong, the Hong Kong-listed shares will be fully fungible with the shares listed on the NYSE.
The Offering initially comprises 1,676,500 new shares of common stock under the Hong Kong public offering and 40,234,200 new shares of common stock for the international offering, representing approximately 4% and 96% of the total number of shares in the Offering, respectively, subject to reallocation and the over-allotment option.
The offer price for the Hong Kong public offering will be determined by reference to, among other factors, the closing price of the shares on the NYSE on the last trading day on or before 4th September, 2020. The Hong Kong public offer price will be not more than US$60.39 per share. The offer price for the international offering tranche of the Offering may be set at a level higher than the maximum Hong Kong public offer price, depending on the closing trading price of the shares on the NYSE on the last trading day on or before 4th September, 2020 and also the level of interest expressed by professional and institutional investors during the book-building process. Shares will be traded in board lots of 50 shares.
The company plans to use the net proceeds from the offering i) to expand and deepen its restaurant network, ii) to invest in digitalization and supply chain, food innovation and value proposition, and high-quality assets, as well as iii) for working capital and general corporate purposes.
The Hong Kong public offering will commence on 1st September, 2020, and will close on 4th September, 2020. Trading of the company’s shares on the SEHK is expected to commence on 10th September, 2020.
Goldman Sachs (Asia) L.L.C. is the sponsor, joint global coordinator, joint bookrunner and joint lead manager for the Offering. Citigroup Global Markets Asia Limited, CMB International Capital Corporation Limited and UBS Group AG are acting as joint global coordinators, joint bookrunners and joint lead managers.