Pedestrians Pass Yum! Brands Shanghai, China
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SINGAPORE – Yum China started trading in Hong Kong on Thursday but lost more than 4% in early trading.
Yum China, which operates KFC, Taco Bell and Pizza Hut fast food restaurants in China, raised $ 2.22 billion by selling 41.9 million shares at HK $ 412 ($ 53.16) a share. on this secondary list.
The company has been registered in New York since 2016.
Yum China’s Hong Kong debut comes after the secondary listing of gaming giant NetEase and e-commerce company JD.com, which raised HK $ 21.09 billion ($ 2.7 billion) and HK $ 30.05 billion ($ 3.87 billion), respectively …
The mega-offer row marks a hot year for Hong Kong listings. US-based Chinese companies are flocking to the city for secondary listing amid growing tensions between the US and China. IN The U.S. Senate passed the bill in June, which could effectively ban many Chinese companies from listing on US exchanges.
R.J. Hottovy, Morningstar’s consumer capital strategist, suggested that the initial decline in stocks may indicate investors are seeing problems in the company itself, rather than IPO fatigue.
“It’s clear that not everyone is willing to invest in this space right now … frankly, there is a lot of uncertainty with Covid,” he told CNBC on Thursday. “Are people going to eat less outside the home … are they going to use online grocery shopping? … I think demand is by far the biggest concern.”
But on the whole, Hottovi noted that the company had “quite impressive growth.”
“I think Yum China is doing well. I think there is a possibility. We do think these shares are a little undervalued at the moment, ”he said.
