Quanjude is likely to sell its shares at 10 to 12 yuan (US$1.33 to 1.6) if the catering company gets approval to list on the Shenzhen exchange, analysts said.

 

A chef slices roast duck at a Quanjude restaurant, shares of the catering company is likely to be sold at 10 to 12 yuan if its IPO gets approval,analysts said. [newsphoto]

 

China Quanjude (Group) Co Ltd, a well-known chain of roast duck restaurants, said it plans to issue up to 36 million shares in a prospectus filed with the securities regulator. The offer would account for 25.43 percent of its expanded capital.

 

The initial public offering (IPO) still needs approval from the China Securities Regulatory Commission (CSRC). If approved, the duck restaurant chain will become the first listed catering company on the mainland.

 

Quanjude is 48.4 percent-owned by the Beijing Tourism Group. It runs nine companies in China in big cities like Beijing and Shanghai and 61 franchised restaurants, including five overseas.

 

The Quanjude brand was established in 1864 and was deemed one of the country's 430 famous brands in 2006 by the Ministry of Commerce.

 

Roast duck is one of the country's best known dishes. Quanjude sells more than 2 million roast ducks on average annually.

 

The company said funds raised in the IPO will be used to renovate two stores in prime locations in Beijing before the 2008 Olympic Games.

 

It will also expand the production capacity of its food-processing plant and distribution center. The listing is also expected to fund the development of Quanjude's franchised restaurants.

    

(China Daily September 28, 2007)