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Securities law

Yum China Holdings Launches Hong Kong Public Offering and Listings on Main Board of Hong Kong Stock Exchange

Strategic Insights

— 2 min read

Yum China Holdings, the largest restaurant company in China by system sales in 2019, has announced the launch of its Hong Kong public offering, which forms part of a global offering of 41,910,700 new shares of common stock. The offering includes an international offering of 40,234,200 new shares and a Hong Kong public offering of 1,676,500 new shares, representing approximately 96% and 4% of the total number of shares in the offering, respectively. The offer price for the Hong Kong public offering will be determined by reference to the closing price of the shares on the NYSE on the last trading day on or before September 4, 2020.

Key Takeaways:

  • The Hong Kong public offering comprises 1,676,500 new shares of common stock and will commence at 9:00 a.m. on Tuesday, September 1, 2020, and close at 12:00 noon on Friday, September 4, 2020, Hong Kong time.
  • The international offering consists of 40,234,200 new shares of common stock and may be set at a level higher than the maximum Hong Kong public offer price.
  • The net proceeds from the offering will be used to expand and deepen the restaurant network, invest in digitalization and supply chain, food innovation and value proposition, and high-quality assets, as well as for working capital and general corporate purposes.
  • The Company had 9,954 restaurants in over 1,400 cities and towns at the end of June 2020, and plans to use the net proceeds from the offering to grow its restaurant network.
  • The Hong Kong-listed shares will be fully fungible with the shares listed on the NYSE, and trading of the Company's shares on the SEHK is expected to commence on Thursday, September 10, 2020.
  • Goldman Sachs (Asia) L.L.C. is the sponsor, joint global coordinator, joint bookrunner and joint lead manager for the offering, while 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.

Statistics:

  • 41,910,700 new shares of common stock are being offered in the global offering.
  • 1,676,500 new shares of common stock are being offered in the Hong Kong public offering.
  • 40,234,200 new shares of common stock are being offered in the international offering.
  • 9,954 restaurants are currently operating in over 1,400 cities and towns at the end of June 2020.
  • The Company plans to use the net proceeds from the offering to expand and deepen its restaurant network, invest in digitalization and supply chain, food innovation and value proposition, and high-quality assets, as well as for working capital and general corporate purposes.

Sources:

  • Yum China Holdings, Inc. press release, dated August 31, 2020.
  • Yum China Holdings, Inc. registration statement on Form S-3 (File No. 333-248449) filed with the U.S. Securities and Exchange Commission on August 28, 2020.
  • Yum China Holdings, Inc. preliminary prospectus supplement and accompanying prospectus filed with the SEC on August 28, 2020.

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