Hyatt Hotels Raises $950 Million In IPO

ASHLEY M. HEHER

CHICAGO (AP) — There's talk of infighting among its founder's heirs and a sluggish appetite for hotel reservations around the globe. But Hyatt Hotels Corp. shares are set to begin trading Thursday now that the company raised $950 million in its initial public offering.

Questions had lingered about whether investors would feel confident enough to snatch up the 38 million shares of the iconic hotel chain that were offered. Among the issues facing the company are disputes between members of the wealthy Pritzker family, the largest holders of Hyatt stock with an 85 percent stake in the Chicago company.

"One thing Wall Street does not like is controversy," said John Fitzgibbon, founder of IPOScoop.

Proceeds from the sale — which was priced late Wednesday at $25 each, near the top end of the $23 to $26 range — will go almost entirely to the family, who will remain in control of the company with about two-thirds of outstanding shares and three-quarters of the shareholder voting power. The board will include two family members, too: Executive Chairman Thomas J. Pritzker and his cousin Penny Pritzker.