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Pedestrians stroll previous Yum! Brands Shanghai, China
Bloomberg | Getty
SINGAPORE — Shares of Yum China started trading in Hong Kong on Thursday, however misplaced greater than 4% in early commerce.
Yum China, which operates quick food eating places KFC, Taco Bell and Pizza Hut in China, raised $2.22 billion by selling 41.9 million shares at 412 Hong Kong dollars ($53.16) apiece in this secondary listing.
The firm has been listed in New York since 2016.
Yum China’s Hong Kong debut comes after the secondary listings of gaming large NetEase and e-commerce firm JD.com, which raised 21.09 billion Hong Kong {dollars} ($2.7 billion) and 30.05 billion Hong Kong {dollars} ($3.87 billion), respectively.
The string of mega choices marks what has been a scorching yr for listings in Hong Kong. U.S.-listed Chinese corporations have been flocking to the town for his or her secondary listings amid rising U.S.-China tensions. The U.S. Senate passed a bill in June that would primarily ban many Chinese corporations from listing on American exchanges.
R.J. Hottovy, client fairness analysis strategist at Morningstar, steered the inventory’s preliminary decline could point out traders seeing points with the corporate itself, fairly than IPO fatigue.
“It’s clear that not everybody is on board with investing in that space right now … frankly there’s a lot of uncertainty with Covid,” he informed CNBC on Thursday. “Are people going to dine out less.. are they going to embrace online grocery? … Demand is certainly the one I think that probably is the biggest concern.”
But on the entire, Hottovy identified that the corporate has had “some pretty impressive growth.”
“I think Yum China’s doing pretty well. I think there could be an opportunity. We do see these shares as slightly undervalued at this point,” he stated.
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