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Yum China launches Hong Kong secondary listing as part of its global offering

Yum China

HONG KONG, China — Yum China Holdings, Inc., China’s largest restaurant company in terms of 2019 system sales, yesterday announced the launch of its Hong Kong public offering, which forms part of the global offering (the “Offering”) of 41,910,700 new shares of common stock (subject to the over-allotment option) and the listing of its shares of common stock on the Main Board of The Stock Exchange of Hong Kong Limited (the “SEHK”) under the stock code “9987”.

The Company’s shares will continue to be listed and traded on the New York Stock Exchange (“NYSE”). Upon the secondary listing in Hong Kong, the Hong Kong-listed shares will be fully fungible with the shares listed on the NYSE.

The Offering initially comprises 1,676,500 new shares of common stock under the Hong Kong public offering and 40,234,200 new shares of common stock for the international offering, representing approximately 4% and 96% of the total number of shares in the Offering, respectively, subject to reallocation and the over-allotment option.

The offer price for the Hong Kong public offering will be determined by reference to, among other factors, the closing price of the shares on the NYSE on the last trading day on or before September 4, 2020. The Hong Kong public offer price will be not more than HK$468.00 per share. The offer price for the international offering tranche of the Offering may be set at a level higher than the maximum Hong Kong public offer price, depending on the closing trading price of the shares on the NYSE on the last trading day on or before September 4, 2020 and also the level of interest expressed by professional and institutional investors during the book-building process. Shares will be traded in board lots of 50 shares.

Yum China Holdings, Inc. plans to use the net proceeds from the Offering i) to expand and deepen its restaurant network, ii) to invest in digitalization and supply chain, food innovation and value proposition, and high-quality assets, as well as iii) for working capital and general corporate purposes.

The Hong Kong public offering will commence at 9:00 a.m. on Tuesday, September 1, 2020, Hong Kong time, and will close at 12:00 noon on Friday, September 4, 2020, Hong Kong time. Trading of the Company’s shares on the SEHK is expected to commence on Thursday, September 10, 2020.

Goldman Sachs (Asia) L.L.C. is the sponsor, joint global coordinator, joint bookrunner and joint lead manager for the Offering. Citigroup Global Markets Asia Limited, CMB International Capital Corporation Limited and UBS Group AG are acting as joint global coordinators, joint bookrunners and joint lead managers.

A shelf registration statement on Form S-3 (File No. 333-248449) relating to the international offering was filed with the U.S. Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the international offering were filed with the SEC on August 28, 2020. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the international offering will be filed with the SEC and made available on the SEC’s web site at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may also be obtained, when available, by contacting Yum China Holdings, Inc., 7100 Corporate Drive, Plano, Texas 75024, United States, telephone 1-469-980-2898.

Before investing, interested parties should read the preliminary prospectus supplement and the accompanying base prospectus in the registration statement and other documents the Company has filed or will file with the SEC for more complete information about the Company and the Offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy the shares, nor will there be any sale of the shares in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.