Yum China, operator of KFC and Pizza Hut, is working with CICC, Goldman on Hong Kong listing as Chinese companies mull return to home market
- The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, according to people familiar with the matter
- The listing could take place as soon as this year, following closely after Alibaba Group Holding’s November listing
Yum China Holdings Inc is working with China International Capital Corp. and Goldman Sachs Inc. on the preparations of a second listing in Hong Kong, fuelling the wave of US-listed Chinese companies returning to a market that is closer to home.
The operator of Pizza Hut and KFC restaurants in China is working with the banks on the share sale, according to people familiar with the matter. The listing could take place as soon as this year, said the people, who asked not to be identified as the information is private.
A successful share sale by New York-listed Yum China would bolster Hong Kong’s push to lure marquee Chinese firms to raise funds in a city that has been shaken by months of pro-democracy protests. It could also be a vote of confidence in the financial hub’s future.
Hong Kong Exchanges & Clearing Ltd. has said it is seeing a spike in inquiries about secondary listings from Chinese companies after Alibaba Group Holding completed its US$13 billion share sale in November. The HKEX is discussing with Chinese technology firms including Trip.com and NetEase for possible listings in the city, people said.
Yum’s plan for Hong Kong follows a move by Hang Seng Indexes Co, compiler of the city’s benchmark Hang Seng Index, to solicit views on the inclusion of companies with primary listing elsewhere and those with unconventional voting structure.
The firm issued a consultation paper on Monday, seeking market feedback on those issues, as well as other matters. It will end on March 13 and results could be known in May, it added.
