Pedestrians walk past Yama! Brands Shanghai, China
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SINGAPORE – Shares of Yum China started trading in Hong Kong on Thursday, but fell more than 4% in early trading.
Yum China, which operates fast food restaurant Rants KFC, Taco Bell and Pizza Hut in China, has raised 22 22.5 billion by selling .91.5 million shares in this secondary list for 418 Hong Kong dollars (1 1.1.) 6).
The company has been listed in New York since 2016.
Yum China’s Hong Kong’s first ranking comes after secondary listings of gaming giant Netiz and e-commerce merchant company JD.com, which grossed HK 21 21.09 billion (7 7 2.7 billion) and HK 30 30.05 billion (.8 87.8787 billion) respectively.
A string of mega .farings shows what a hot year it is to be listed in Hong Kong. US-listed Chinese companies are coming to the city for their secondary list amid US-China tensions. The U.S. Senate passed a bill in June that could inevitably ban many Chinese companies from listing on American exchanges.
Morningstar’s consumer equity research strategist, RJ Hotway, suggested that an initial drop in stock could signal investors looking at issues within the company rather than IPO fatigue.
“It’s clear that right now not everyone is on board to invest in that space … obviously there’s a lot of uncertainty with Covid,” he told CNBC on Thursday. “Are people going to eat less .. Do they accept grocery groceries?… Demand is definitely what I think is probably the biggest concern.”
But overall, Hotway said the company has made “some pretty impressive growth.”
“I think Yum China is doing very well. I think there might be a chance. We’ll see this stock undervalued a bit at this stage.”
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