Late Friday night, after a really poor market day, Hyatt Hotels issued an amended S-1 for its planned initial public offering. Because of last week’s market volatility, we are getting mixed signals about both the ultimate pricing and about which night the hotel operator will price its deal. The deal is still set for 38 million shares in a price range expected as $23.00 and $26.00. The company will also trade under the ticker “H” on the NYSE.
Hyatt is controlled by the Pritzker family. It has a huge underwriting syndicate with Goldman Sachs as lead manager. Co-managers are listed as Deutsche Bank, J.P. Morgan, Bank of America Merrill Lynch, Citigroup, UBS, HASBC, Piper Jaffray, Wells Fargo, and Scotia Capital. Other companies also listed on the prospectus are Robert W. Baird, Loop Capital Markets, M.R. Beal, Ramirez & Co., Siebert Capital Markets, and The Williams Capital Group. The underwriting group has an overallotment option to purchase up to an additional 5.7 million shares of common stock.
The mid-point of this IPO will generate roughly a $4.11 billion market cap, and the net tangible book value as of September 30, 2009 was approximately $4.5 billion (roughly $26.98 per share). This is less than 80% of the value of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) $5.4 billion market cap and less than half of Marriott International, Inc. (NYSE: MAR) $9 billion market cap.
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