Shares of Yum China Holdings (YUMC) - Get Yum China Holdings, Inc. Report fell after the Chinese arm of Yum Brands (YUM) - Get Yum! Brands, Inc. (YUM) Report priced its Hong Kong Stock Exchange listing at HK$412 (US$53.56) per share, raising US$2.2 billion.
Sources revealed the listing price to Bloomberg. Yum China sold 41.91 million shares in the offering, they said. Yum Brands owns KFC, Pizza Hut and Taco Bell.
Yum China shares recently traded at $54, down 3.43%, and have climbed 7% year to date through Thursday. Yum Brands shares recently traded at $95.09, down 1.29%, and have slipped 4% year to date through Thursday.
Yum China joins a growing docket of Chinese companies who began with listings in the U.S. and are now listing in Hong Kong as well. That’s because the Trump administration has made various threats to U.S.-listed Chinese companies, including strict auditing requirements.
The docket of dual listers includes Ali Baba (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 represents the biggest restaurant operator in China, with 10,000 stores in 1,400 cities.