Yum China’s Hong Kong stock offering prices, as the KFC, Taco Bell licensee raises the equivalent of $2.2 billion

/ / News

Shares of Yum China Holdings Inc. dropped 2.9% in premarket trading Friday, after the Shanghai-based licensee of KFC, Taco Bell and Pizza Hut restaurant chains parent Yum Brands Inc. , said its global and Hong Kong public offering priced, with the company raising HG$17.27 billion ($2.23 billion). The offering of 41.91 million shares was priced at HK$412.00, or the equivalent of $53.16. The stock, which has been listed on the New York Stock Exchange since October 2016, will start trading on the Stock Exchange of Hong Kong starting Sept. 10. Yum China said it plans to use the proceeds from the offering to expand its restaurant network, invest in digitalization and the supply chain and for working capital and general corporate purposes. Yum China’s stock has rallied 16.5% year to date through Thursday, while Yum Brands’ stock has slipped 4.4% and the S&P 500 has gained 6.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.