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.

Another IPO also is up in its debut today: Ancestry.com, an online family-history research firm. The Provo, Utah, company on Wednesday sold 7.4 million shares at $13.50 each.

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

Comments

[Cindy Standfest]

I have used Ancestry.com for many years as an excellent source for genealogy information. You have access to land, death, birth, marriage and census records. Not to mention wills in the handwriting of your ancestors in many cases. This is a very strong and excellent company which is always adding to its subscription base. I feel this is and will continue to be an excellent investment.