NEW YORK (AP) — Shares of 7 Days Group Holdings Ltd. soared on Friday after the discount lodging chain's initial public offering priced at the high end of an expected range.
The stock jumped $1.93, or 18 percent, to $12.93 on the New York Stock Exchange. Underwriters had expected the shares to fetch between $9 and $11 each.
Investors may see growth opportunities for 7 Days, which operates more than 280 hotels in China — a popular tourist destination among overseas travelers.
Proceeds of $111.1 million raised in the deal will be used to pay down debt and fund working capital, 7 Days said. Proceeds will also help build more locations and improve others.
Shares trade under the ticker symbol "SVN."
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