NEW YORK (AFP) - Hyatt Hotels lept onto the stock exchange Thursday raising almost a billion dollars in an initial public offering despite the tourism industry crisis, in Wall Street's second largest flotation this year.
In a massive show of confidence in the US and global economy as it recovers from the worst recession in decades, the leading US hotel chain said it was offering 38 million shares at 25 dollars each for a total of 950 million dollars.
The Chicago-based Hyatt Hotels, which is 85 percent owned by the wealthy Pritzker family, became the 18th company to launch an IPO on the New York Stock Exchange this year.
"We are delighted at the success of our initial public offering and with our new partnership with the NYSE," said Mark Hoplamazian, chief executive officer of Hyatt Hotels Corporation, in a statement.
"Moving forward, our focus will continue to be providing authentic hospitality to our guests and driving preference for our brands."
The Banco Santander, which listed on October 7, was the year's biggest flotation raising some seven billion dollars.
Hyatt operates hotels in 45 countries, and the Pritzker family will retain control of the group until at least 2015 even though it will hold less than 50 percent.
Its shares, trading under the symbol of "H," rose sharply in early morning trading and by 1545 GMT were up 7.72 percent to 26.93 dollars.
Investors which take up the offer will have 30 days to snap up a further 5.7 million shares which could raise the funds invested to 1.0925 billion dollars.
"Hyatt is a leading global brand and a welcome addition to our listed company family," said Duncan Niederauer, chief of NYSE Euronext.
"We look forward to a beneficial and lasting partnership with Hyatt and to providing the company and its shareholders with the highest levels of service and market quality."
Hyatt Hotels had listed on the bourse before in the 1960s, but was withdrawn when the Pritzker family retook control between 1979 and 1982.
"The fact that we see a strong brand like this in the travel leisure sector performing well on its first day of trading is positive," said Craig Peckham, from the Jefferies brokerage.
The capital raised from the IPO will inject vital impetus into the chain which owns 413 establishments, or 115,509 rooms and employs some 80,000 staff.
It has not been spared from the ravages of the global economic downturn though, with some 168 million dollars shaved off its profits last year amid debts of around 858 million dollars.
