IPO market gets a lift as buyers jump on Hyatt and Ancestry.com deals
Hyatt Hotels Corp. picked a good day to launch its initial public stock offering: With buyers jumping back into the market on surprisingly upbeat data on unemployment-benefit claims and worker productivity, Hyatt shares are being swept higher.
The stock, priced at $25 in the IPO late Wednesday, was up $3, or 12%, to $28 at about 11:30 a.m. PST.
The offering of 38 million Class A shares raised $950 million, making it the fourth-largest IPO of the year, according to ipohome.com.
But all of the proceeds are going to the Pritzker family, which controls the Chicago-based hotel giant. Bloomberg News takes a look at the company here.
The stock was up $1.29, or nearly 10%, to $14.79 at about 11:30 a.m. PST.
The receptions for the Hyatt and Ancestry.com deals could reinvigorate the IPO market, which has seen many deals bomb in recent weeks.
Dole Food Co., which went public at $12.50 a share on Oct. 22, has since slumped under $11.50. RailAmerica Inc., a short-line rail operator, went public at $15 a share on Oct. 12 and now trades under $12.50. Both of those offerings fell immediately on their first trading days, unlike the receptions Hyatt and Ancestry.com are getting.
A number of other planned IPOs have been pulled in recent weeks as the market has soured. Companies that have delayed deals include skilled-nursing-facility operator Avi REIT and Dallas-based bank Plains Capital Corp.
-- Tom Petruno
Photo: The Grand Hyatt in Washington. Credit: Karen Bleier / AFP / Getty Images