Yum China (YUMC) - Get Yum China Holdings, Inc. Report, China's largest restaurant company, launched a secondary offering on the Hong Kong Stock Exchange as part of a global offering of 41.9 million shares.
The broad offering includes 1.68 million common shares for the Hong Kong listing and more than 40 million for the international offering. The two parts amount to 4% and 96%, respectively, of the total offering.
Yum China will trade on the main board of the Hong Kong exchange under the code 9987.
The stock will continue to be listed on the New York Stock Exchange and when the secondary listing becomes effective, the Hong Kong-listed shares will be fully fungible with the NYSE-listed shares.
The Wall Street Journal reported that Yum’s offering becomes the latest in a series of secondaries by Chinese companies whose shares are already traded in New York, such as Alibaba Group, (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report JD.com (JD) - Get JD.com, Inc. (JD) Report and NetEase. (NTES) - Get NetEase, Inc. Sponsored ADR (NTES) Report
Yum China runs the Asia operations of U.S. brands including KFC, Pizza Hut and Taco Bell.
Goldman Sachs is joint global coordinator, bookrunner and lead manager for the offering.
The public offering commenced at 9 a.m. Tuesday Hong Kong time (9 p.m. Monday U.S. Eastern) and will conclude at noon Friday, Sept. 4, Hong Kong time.
The company plans to use the proceeds from the share offering to "expand and deepen its restaurant network, to invest in digitalization and supply chain, food innovation and value proposition, and high-quality assets, as well as for working capital."
Yum China's Hong Kong listing also comes at a time of tensions between the U.S. and China.
U.S. regulators are threatening to restrict Chinese companies' access to U.S. capital markets unless those companies allow U.S. regulators access to their audits.
Yum China shares at last check were little changed at $57.79.