Pizza Hut, KFC operator Yum China gets the green light to pursue secondary stock listing in Hong Kong
- The operator of KFC, Pizza Hut and Taco Bell in mainland China could seek a secondary listing as soon as September, a source says
- The listing would mark the latest Chinese firm to seek a secondary listing in Hong Kong as US-China tensions rise
Yum China Holdings received approval on Friday to move forward with a potential US$2 billion stock offering in Hong Kong, according to people familiar with the matter.
A listing by the operator of KFC, Pizza Hut and Taco Bell in mainland China would mark the latest “homecoming” of a US-listed Chinese firm as more companies pursue secondary listings in the city against the backdrop of rising tensions between Washington and Beijing.
The company is considering a listing as soon as September, according to one person, who was not authorised to discuss the matter publicly.
Yum China declined to comment on Friday.
The Hong Kong listing comes almost four years after Yum China was spun off from Yum! Brands and listed in New York in November 2016. The company operates about 10,000 restaurants in 1,400 cities and towns in the mainland.
Yum China said its revenue declined 11 per cent to US$1.9 billion in the second quarter and profit fell 26 per cent to US$132 million as China experienced an uneven recovery from the coronavirus pandemic.
