Chinese based American fast food restaurant Yum China Inc. (YUMC) is looking forward to raise $2.2 billion from its upcoming secondary listing in the stock exchange of Hong Kong.
Insider information indicates the company will be selling its stock at HK$412 per share. The company said it will floating 41.91 million shares in Hong Kong, the shares will bear a 4.8% share discount of their last closing price.
This listing will go down as the third largest secondary listing of 2020 in the Hong Kong market.
Several Chinese companies listed on U.S markets have been on the move seeking a secondary listing in their home markets after trade disputes between the two countries escalated during the pandemic. The U.S has expressed concern to delist Chinese companies which do not adhere to their accounting methods.
Another reason why these companies are seeking secondary listing in Hong Kong is sometimes back a group of U.S legislators threatened to impose new restrictions which would make it tough for Chinese companies to list on U.S markets.
Yum China is in charge of operating KFC, Pizza Hut restaurants and Taco Bell in China.