On September 10, 2020, China’s largest restaurant company – Yum China Holdings, Inc. (“Yum China” or the “Company”; NYSE:YUMC, HKSE:9987) – successfully completed its secondary listing on the Main Board of the Hong Kong Stock Exchange (“HKSE”), with AMTD having acted as a Joint Bookrunner and Joint Lead manager on the transaction. This transaction marks yet another mega Hong Kong IPO completed by AMTD and further demonstrates AMTD’s unparalleled strength in assisting leading Chinese companies raise funds in the international capital markets.
Since opening its first KFC restaurant in Beijing in 1987, Yum China has grown into the largest restaurant company in China. The Company had US$8.8 billion of revenue in 2019 and over 9,900 restaurants in over 1,400 cities as of June 30, 2020. The Company’s restaurant network consists of well-known brands including KFC, Pizza Hut, Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell and Lavazza. In 2016, the Company spun-off from YUM and became a publicly-traded company under the ticker symbol “YUMC” on the NYSE. With the completion of its secondary listing on the HKSE, Yum China is turning a new chapter in its business development. With the vision of becoming the world’s most innovative pioneer in the restaurant industry, Yum China will continue to use innovation and technology as the main pillars in its future success and its sustainable growth, to enhance guest experience and to optimize operations and cost efficiency.
In this transaction, Yum China offered a total of 41,910,700 shares at the offer price of HK$412 per share, which translated to an offering size of US$2.23 billion (prior to the exercise of the over-allotment option) and represented a 4.9% discount compared to the closing price of its US-traded shares (YUMC) on September 3, 2020. This transaction received widespread interest and active participation among both institutional and retail capital market participants. The Hong Kong public offering was oversubscribed by approximately 52.32 times, triggering the maximum clawback which increased the size of the Hong Kong public offering tranche to 16.5% of the total number of offer shares initially available under the global offering; the international offering was oversubscribed by approximately 8.74 times from sovereign wealth funds, long-only funds and Chinese funds.
AMTD was the only Hong Kong-based investment bank, as well as the only independent investment bank, in the syndicate. As a Joint Bookrunner and Joint Lead manager on the transaction, AMTD contributed greatly to the success of the offering by bringing in a large amount of high-quality and non-price sensitve orders from Hong Kong tycoon famliies, large long-onlys and hedge funds in the multi-billion dollar range. As a result of the quality of orders brought in by AMTD, AMTD received the largest allocation amongst the joint bookrunners in the transaction.
The Yum China secondary listing is the latest in a long list of mega Hong Kong IPOs successfully completed by AMTD. Other notable mega Hong Kong IPOs completed by AMTD includes the US$5.43 billion Hong Kong IPO of Xiaomi Corporation —the third largest technology / internet company IPO at the time and the first Hong Kong listed company with “weighted voting rights”, the US$4.22 billion HK IPO of Meituan Dianping —China’s largest lifestyle services e-commerce platform, and the US$860 million HK IPO of Feihe —the largest and most highly recognized Chinese brand infant milk formula company.
In addition, AMTD International (NYSE:HKIB, SGX:HKB) is itself a dual-listed company. AMTD International first debuted on the NYSE on August 5, 2019. AMTD International then completed its secondary listing on the Main Board of the Singapore Exchange on April 8, 2020, becoming the first ever company to be dual-listed on NYSE and SGX. As a dual-listed company itself, AMTD understands the needs and challenges faced by companies pursuing a dual-listing. AMTD’s extensive first-hand experience in navigating the challenges of a dual-listing, and in combination with our unparalleld distribution capability, makes us the ideal partner for any issuer seeking a initial listing or secondary listing on the international capital markets.