Extended Stay America rises in market debut

NEW YORK (AP) — Hotel operator Extended Stay America is rising in its first day as a publicly traded company.

Shares jumped as high as $23.90 Wednesday morning, or 19.5 percent. The gain pared to $2.99, or 15 percent.

The initial public offering of about 28.3 million shares priced at $20, the midpoint of the projected $18 to $21 per share range. Each share includes common stock of Extended Stay and Class B common stock of ESH Hospitality Inc.

Extended Stay America Inc. raised approximately $566 million in the offering. Most of the proceeds will go toward repaying ESH Hospitality debt.

The underwriters have a 30-day option to buy up to an additional 4.2 million shares.

The stock is trading on the New York Stock Exchange under the "STAY" ticker symbol.

The offer is targeted to close on Monday.

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