IDG commits $40m to Peking Duck restaurant chain Quanjude

According to a regulatory filing, Quanjude is raising a total of RMB350 million by offering 24.95 million ordinary shares through a private placement. The shares were priced at RMB14.03 apiece and investors are subject to a 36-month lock-up period.

IDG has subscribed 17.8 million of the shares, leaving the remainder to be purchased by China Lodging Group, a domestic hotel group. Upon completion, China Lodging will hold 2.3%. Beijing Tourism Group, the biggest shareholder of Quanjude, has reduced its stake to 42.72% from previous 46.48%.

The net proceeds will be used for six projects, including the construction of a central kitchen and network. The transaction is expected to close within the next six months.

As of June, Quanjude had 102 restaurants in China and in other Asian markets. It also produces packaged ducks and related foods for supermarket chains.

In 2012, the company had annual sales of RMB1.9 billion. As of September 17, it had a market cap of RMB4.8 billion.

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• Topics
• Greater China
• PIPEs
• Consumer
• Expansion
• China
• IDG Capital Partners
• PIPE
• Consumer
• Growth capital