By Joanne Chiu

China's largest restaurant company is set to raise around US$2.2 billion in a secondary listing.

Yum China Holdings Inc., which operates KFC and Pizza Hut in mainland China, on Friday guided investors that it plans to price its Hong Kong stock sale at 412 Hong Kong dollars (US$53.16), a person familiar with the situation said.

That represents a roughly 5% discount to Yum China's closing price in New York Thursday, and implies a total deal size of about US$2.2 billion. Follow-on share offerings are usually priced slightly cheaper than existing shares.

The company will announce the final offer price before U.S. markets open Friday, the person said. The guidance technically applies to shares being sold to institutional investors, but in practice a small slice of the deal that is reserved for individual investors is likely to be sold at the same price.

Yum China's stock sale, which is led by Goldman Sachs, would add to a series of recent secondary listings in Hong Kong by Chinese companies whose shares are already traded in New York, such as Alibaba Group Holding Ltd., JD.com Inc. and NetEase Inc.

The company on Monday said it plans to issue about 41.91 million to investors before a market debut on the Hong Kong stock exchange under the stock ticker 9987.HK on Sept.10. 



  Write to Joanne Chiu at joanne.chiu@wsj.com