China Quanjude (Group) Co., a restaurant chain known for its Peking duck, plans to raise 380.6 million yuan (US$50 million) through an initial public offering in Shenzhen to fund expansion, the company said Tuesday.

Quanjude, whose history dates back to the Qing Dynasty in 1864, plans to sell as many as 36 million shares, or 25.43 percent of its enlarged capital, the company said in a sales document.

The China Securities Regulatory Commission, the securities watchdog, said on its Web site it would consider the IPO proposal Saturday.

Quanjude, which owns nine restaurants and franchises and another 61 outlets with its brand, plans to use the IPO proceeds to renovate its stores, expand its network and update its logistics systems.

The restaurant posted 56.66 million yuan in net profit last year on sales of 665.64 million yuan. Sales and profit grew an average 22 percent annually over the past three years.

This year's results, however, will be hurt by the renovation of a restaurant in Beijing, Quanjude said.

The renovation, which started in April and will finish by the end of this year, is expected to reduce this year's sales by 106.74 million yuan and income by 20.18 million yuan.