Oak Stone Limited Comments on Yum China Aiming for September Hong Kong Listing

TAIPEI, Taiwan–(BUSINESS WIRE)–Taipei-based financial management company Oak Stone Limited have commented on Yum China Holdings Inc. aiming for a second listing in Hong Kong as early as September, adding to this year’s long list of billion-dollar share sales in the financial hub of Asia.

“Yum China, which runs outlets of U.S. brands like KFC, Pizza Hut and Taco Bell across the country, is planning to seek Hong Kong stock exchange approval before the end of this month. Deal specifics such as timing and size are not yet finalised and are likely to change in the coming weeks,” said Michael Pearson, Head of Corporate Equities at Oak Stone Limited.

China’s largest restaurant company has partnered with Goldman Sachs Group Inc. and China International Capital Corp. on the listing. The deal is also being arranged with Citigroup Inc, CMB International Capital Corp. and UBS Group AG. Yum China has filed confidentially for the Hong Kong share sale, which could raise around $2 billion for the company.

“New York-listed Yum China is another company who join the growing wave of U.S.-listed Chinese firms seeking a trading foothold in Hong Kong due to the deteriorating relations between the U.S. and China. Regulators in the U.S. are threatening to restrict the access of Chinese companies to the American capital markets if they refuse to let authorities review their audits,” commented James Burnley, Head of Wealth Management at Oak Stone Limited.

Earlier this year, the No.2 online retailer in China, JD.com Inc., raised $4.5 billion in its Hong Kong listing in June, the second-largest initial share sale in the world, according to data collected by Oak Stone Limited. During the same month, gaming firm NetEase Inc. raised $3.1 billion from its initial offering in the financial hub. Last year, Alibaba Group Holding Ltd. pioneered what many are calling the “homecoming” listing model for U.S.-listed Chinese firms with a staggering $13 billion share sale.

In a recent report, Yum China revealed an unsteady recovery from the impact of the coronavirus pandemic, with sales increasing through April and May but declining again in June. The company stated comparable sales were down 11% from the previous year in the second quarter, and it expects the pressure to continue in the third quarter.

According to its website, Yum China operates 10,000 restaurants in more than 1,400 cities across China. Its New York shares were up 13% this year.

About Oak Stone Limited

Oak Stone Limited was established in late 2014 within the financial heart of Taipei, Taiwan. The company has since grown into a leading wealth management company in the Asia-pacific region, serving both individual clients and institutions.

Contacts

Yuan Cui, Head of Research & Analysis

yuan.cui@oakstonemanagement.com
Oak Stone Limited, 10F No. 178, Section 3, Minquan East Road,

Songshan District, Taipei City, Taiwan