(Yicai Global) Sept 10 -- Shares of Yum China Holdings, which runs KFC and Pizza Hut in the country, fell in their Hong Kong market debut today. 

The stock [HKG: 09987] closed 5.3 percent lower at HKD390.20 (USD50.35), after pulling back from a 6.3 percent drop. The initial offering price was HKD412. In pre-market trading in New York, the company’s shares [NYSE: YUMC] were down about 5 percent at USD50.50 as of 5.21 a.m. local time.

The secondary flotation is the latest in a string of so-called homecomings by Chinese companies that already trade on US markets. Recent high-profile returnees include internet technology company NetEase and e-commerce giant JD.Com.

In June, Charles Li, the chief executive of Hong Kong Exchanges and Clearing, which runs the local bourse, said it was expecting a swathe of new listings by Chinese firms due to a “less friendly” US regulatory environment. 

The homecoming of Shanghai-based Yum China, the nation’s biggest restaurateur, was disappointing and follows the explosive debut of Nongfu Spring two days ago. The leading company in China’s bottled water business surged 54 percent in its Hong Kong listing.

Yum China raised HKD17.27 billion from the sale of new shares. The firm plans to spend 45 percent on extending its sales network and another 45 percent on upgrading its digital infrastructure and new product development. The remainder will go to daily operations.

The company, which also runs Taco Bell, Little Sheep hotpot and Huangjihuang three-sauce simmer-pot eatery chains, had more than 9,900 outlets in China as of June 30. KFC brought in first-half operating revenue of USD2.6 billion, making up 70.5 percent of the total. Pizza Hut contributed USD748 million, a 20.5 percent input, while other brands generated USD78 million, or 2.1 percent.

Before the Hong Kong listing, Invesco was Yum China’s largest shareholder with a 10.8 percent stake, followed by BlackRock with 7.2 percent and Primavera Capital with 6.3 percent. Chinese fintech giant Ant Group is also a shareholder. Primavera founder and Chairman Hu Zuliu is Yum China’s chairman.

Editor: Ben Armour