Hyatt Hotels Rises From IPO Price In Debut On NYSE

MICHELLE CHAPMAN

NEW YORK (AP) — Shares of Hyatt Hotels Corp. rose sharply Thursday in the iconic hotel chain's first day on the New York Stock Exchange, with investors appearing to dismiss concerns about infighting among its founder's heirs and tepid hotel reservations around the world.

Hyatt's stock gained $3, or 12 percent, to $28 in afternoon trading.

The company, based in Chicago, raised $950 million in its initial public offering. It priced late Wednesday at $25 a piece, near the top end of the $23 to $26 range.

The stock's upbeat trading is a welcome sight for the market, which has watched many IPOs fall short of expectations, including Dole Food Co. and AGA Medical Holdings Inc. Dole Food had priced its IPO at $12.50 per share last month, but the fruit and vegetable producer originally expected to price between $13 and $15 each.

David Menlow, president of IPOfinancial.com, believes Hyatt's Thursday trading is evidence that "the IPO market is not unraveling as many would like to think that it is."