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Yum China may seek Hong Kong listing: Bloomberg
Posted on Tuesday, 14 January 2020 10:06
New York Stock Exchange-quoted Yum China Holdings has hired China International Capital and Goldman Sachs to start preparing for a potential H share sale in Hong Kong that could come as early as this year, Bloomberg reported.
When speaking to the news provider, sources, who declined to be named as the matter is confidential, cautioned the matter still in the early stages and details may change.
All three companies mentioned in the report either declined to, or were not available to reply to requests for comment.
Yum China was part of Yum! Brands until October 2016, when it was spun off into an independent, publicly-traded company following a pro rata distribution of shares.
The company is a licensee of Yum! Brands in mainland China and has exclusive rights to KFC, Pizza Hut and Taco Bell in the country, excluding Hong Kong, Taiwan and Macau.
In addition, it owns the Little Sheep, East Dawning and COFFii & JOY concepts outright.
Yum China had more than 8,900 outlets, comprising predominately KFC and Pizza Hut-branded sites, at the end of September 2019 and ranked 362nd on the Fortune 500 list in 2019.
According to the report for the first nine months of 2019, the group has grown to become one of the country’s largest restaurant developers, with locations in over 1,300 cities by the end of September 2019.
Yum China generated net profit of USD 623.00 million on total revenue of USD 6.75 billion in Q1-3 2019, compared to USD 634.00 million on USD 6.50 billion over the same timeframe in 2018.
The company’s shares closed at USD 48.13 in New York yesterday to give a market capitalisation of USD 18.09 billion.
Bloomberg’s report follows another from the beginning of the month that suggested Alibaba’s multi-billion-dollar secondary listing in Hong Kong at the end of 2019 has prompted other Chinese companies, including two offshore-listed technology players to make their own inquiries.
Sources with knowledge of the situation, who declined to be named as the matter is confidential, told the news provider that officials of Hong Kong Exchanges & Clearing have held follow-up discussions with both Trip.com Group and NetEase.
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