(Reuters) – Hotel chain Extended Stay America Inc raised $566 million after its initial public offering was priced at $20 per share, the mid-point of its expected range.
The company, headed by former Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) Chief Executive James Donald, sold 28.3 million shares in the offering. At the listing price, the company is valued at about $4 billion.
Extended Stay America was bought for $3.9 billion at a bankruptcy auction in October 2010 by a group including hedge funds Paulson & Co and Centerbridge Partners and private equity firm Blackstone Group LP (BX.N: Quote, Profile, Research, Stock Buzz).
Charlotte, North Carolina-based Extended Stay America operates 682 hotels in the United States and Canada. The company reported revenue of $313.7 million and net income of $46.6 million for the three months ended September 30.
The company is expected to debut on Wednesday on the New York Stock Exchange under the symbol “STAY”.
Deutsche Bank, Goldman Sachs and J.P. Morgan are lead underwriters for the offering.