IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

Yum China Secondary Listing: Trading Debut

Yum China Secondary Listing – Is There More Downside?

Yum China Secondary Listing: Do the Fundamentals Stack up Post 2Q20 Earnings?

Yum China Secondary Listing: Do the Fundamentals Stack Up?

JD.com Secondary Listing: HK-ADS Premium/(Discount) Views

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Yum China Holdings  / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/yum-china-holdings-inc" target="_blank" data-smartkarma-citation="entities:23677:1" rel="noopener">Yum China Holdings, Inc (YUMC US)</a> has launched a $2.5 billion secondary listing in Hong Kong. <a href="https://www.smartkarma.com/profiles/rickin-thakrar" target="_blank" data-smartkarma-citation="accounts:1486" rel="noopener">Rickin Thakrar</a> has outlined his views on Yum China’s fundamentals and valuation in <a href="https://www.smartkarma.com/insights/yum-china-secondary-listing-do-the-fundamentals-stack-up-post-2q20-earnings" target="_blank" data-smartkarma-citation="insights:42814" rel="noopener">Yum China Secondary Listing: Do the Fundamentals Stack up Post 2Q20 Earnings?</a>. The H shares will be priced on Friday and are scheduled for listing on 10 September.  </p><p>Like <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a> and <a href="https://www.smartkarma.com/entities/jd-com-inc-adr" target="_blank" data-smartkarma-citation="entities:446:1" rel="noopener">JD.com Inc (ADR) (JD US)</a>, Hong Kong will be a meaningful trading venue for <a href="https://www.smartkarma.com/entities/yum-china-holdings-inc-0533692c-6dae-4014-baa1-ed0b050638f2" target="_blank" data-smartkarma-citation="entities:29259:1" rel="noopener">Yum China Holdings Inc (9987 HK)</a>, driving conversion demand, in our view. Notably, Alibaba’s HK freefloat shares as a percentage of HK-registered shares have risen at an increasing pace and currently stands at 55.9% (vs 11.1% at listing).</p><div class="content-highlight"><p>In this note, we examine Yum China’s potential HK-ADS premium/(discount). Yum China will likely price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Yum China pricing its H-shares around a 3.0% discount to its ADSs will be reasonable.</p></div>

Yum China Holdings, Inc (YUMC US) has launched a $2.5 billion secondary listing in Hong Kong. Rickin Thakrar has outlined his views on Yum China’s fundamentals and valuation in Yum China Secondary Listing: Do the Fundamentals Stack up Post 2Q20 Earnings?. The H shares will be priced on Friday and are scheduled for listing on 10 September.  Like Alibaba Group (BABA US) and JD.com Inc (ADR) (JD US), Hong Kong will be a meaningful trading venue for Yum China Holdings Inc (9987 HK), driving conversion demand, in our view. Notably, Alibaba’s HK freefloat shares as a percentage of HK-registered shares have risen at an increasing pace and currently stands at 55.9% (vs 11.1% at listing).In this note, we examine Yum China’s potential HK-ADS premium/(discount). Yum China will likely price its H-shares at a discount to its ADSs to entice investors to participate in the secondary listing. Overall, we think that Yum China pricing its H-shares around a 3.0% discount to its ADSs will be reasonable.

Yum China Secondary Listing: HK-ADS Premium/(Discount) Views