China Quanjude (Group) Co., Ltd, a famous Peking roast duck
restaurant chain, is planning to sell up to 36 million shares in
its initial public offering (IPO) on the Shenzhen Stock
Exchange.
The China Securities Regulatory Commission (CSRC) is to review
Quanjude's IPO plan on Saturday.
The 36 million shares would account for 25.43 percent of its
expanded capital after the IPO, the restaurant chain said in a
draft prospectus filed to the CSRC.
It would use the proceeds for outlet renovation and expansion
and upgrading its food production bases and logistic centers.
Quanjude plans to raise 380.63 million yuan (50.7 million U.S.
dollars) from the share sale.
If the proceeds exceeded the proposed investment, the remainder
would supplement its liquidity. If the proceeds were less, Quanjude
would resort to bank loans or its own capital, according to the
prospectus.
China Merchants Securities would be the major underwriter.
The company has nine outlets and 61 franchised outlets,
including five abroad. The brand of Quanjude dates back to 1864
during the Qing Dynasty (1644-1911).
It posted net profits of 25.62 million yuan in the first quarter
of 2007 and 56.66 million yuan in 2006.
(Xinhua News Agency September 27, 2007)
