Pedestrians pass Yum! Brand Shanghai, China
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Singapore — Yum China’s stock began trading in Hong Kong on Thursday, but fell more than 4% in initial trading.
Yam China, who runs fast food stores KFC, Taco Bell, and Pizza Hut in China, It raised $2.22 billion by selling 41.9 million shares for 412 Hong Kong dollars ($53.16) each. In this secondary list.
The company has been listed in New York since 2016.
Yum China’s Hong Kong debut raised $21 billion ($2.7 billion) and $30 billion Hong Kong ($387 billion), respectively, following the second listing of gaming giant NetEase and e-commerce company JD.com.
The continuation of the mega offering marks a hot year for listing in Hong Kong. US-listed Chinese companies are flocking to cities for a second listing amid rising tensions between the US and China. that much Bill passed in the US Senate June could essentially ban many Chinese companies from listing on US exchanges.
RJ Hottovy, Morningstar’s consumer equity research strategist, suggested that the stock’s initial decline could indicate that investors are seeing problems with the company itself rather than IPO fatigue.
He told CNBC on Thursday, “It is clear that not everyone is currently involved in investing in the space. Honestly, there is a lot of uncertainty about Covid.” “Will people cut down on eating out… will they accept online groceries?… I think demand is probably the biggest concern.”
But overall, Hottovy pointed out that the company had “pretty impressive growth.”
“I think Yum China is doing pretty well. I think there may be a chance. We see this stock as a bit undervalued at this point,” he said.