Fast food restaurant company Yum China Holdings Inc (NYSE:YUMC) trading debut on Tuesday began on a low key when the stock slipped 4.76% lower.
Listed under the ticker “9987” on the Hong Kong Exchange, Yum China's stock closed the first day of trading 3.7% lower at HKD 396.60 ($ 51.17).
What Happened: Yum China generated $2.2 billion in its initial public offering by issuing 41.9 million shares in Hong Kong at approximately $53.16, according to Bloomberg. The homecoming listing in Hong Kong came against the backdrop of the United States government's threat to delist Chinese companies from the country's exchanges.
Some other Chinese companies that recently opted for a second listing in Hong Kong include e-commerce company JD.Com Inc (NASDAQ:JD) and NetEase Inc (NASDAQ:NTES). Both these companies collectively raised over $7 billion in their IPOs in the Chinese special administrative region.
Why It Matters: The company operates franchises like KFC, Pizza Hut, and Taco Bell, and has a strong presence in China with over 10,000 restaurants across 1,400 cities.
Yum China has been trading on the NYSE since Oct. 2016. On a year-to-date basis, YUMC has generated over 8.2%. It has grown 1.13 times since its inception on the U.S. exchange.
Price Movement: After a 1.64% gain during trading hours on Wednesday, YUMC added another 0.73% in the after-market trading hours at $53.59 in New York.