Yum China pushes ahead with Hong Kong secondary listing, sources say
- Yum China is filling out the ranks of its advisers on a Hong Kong secondary listing
- Growth and innovation in the fast-food operator's digital offering is key to attracting new investors
Yum China Holdings is moving ahead with its plans for a potential US$2 billion stock offering in Hong Kong, as the operator of KFC, Pizza Hut and Taco Bell in the mainland seeks to become the latest US-listed Chinese firm to pursue a secondary listing in the city, according to people familiar with the matter.
The firm is hosting auditions for roles on the bumper offering on Friday, the people familar said, requesting anonymity as the information was not public. Yum China spokespeople did not immediately reply to a request for comment.
The Yum China’s move comes hot on the heels of successful Hong Kong debuts by NetEase, the world’s second-largest mobile games publisher, and JD.com, one of China’s largest e-commerce sites.
Similar to its peers, Yum China is seeking to diversify its shareholder base and believes investors in Asia will be more familiar with consumer trends in its home market. Management is also alive to mounting political risk as relations fray between the US and China. It sees a listing in Hong Kong as going some way towards mitigating this risk, said one of the people familiar.
A spokesman for Yum China said the firm does not comment on rumors or market speculation in response for a request for comment.
Yum China would be the fourth high-profile listing by a major Chinese company with American depositary receipts (ADRs) in the past eight months since Chinese e-commerce giant Alibaba Group Holding’s US$12.9 billion secondary listing in November. Alibaba is the parent company of the South China Morning Post.