7 Days Group IPO prices at high end of range

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NEW YORK -Discount lodging chain 7 Days Group Holdings Ltd. said Friday it priced an initial public offering at the high end of its expected range.

The operator of more than more than 280 hotels in China priced 10.1 million shares at $11 per share, at the high end of an expected range of $9 to $11 per share.

The company plans use cash raised in the deal to pay down debt and fund working capital. It will also build more locations and improve others.

The company has lost money every year since 2006. In 2008, it lost $185.2 million, but was able to turn a profit in the most recent quarter.

So far this year, 7 Days has lost $1.5 million, or 3 cents per share, but some investors may see growth opportunities amid China's expanding population and desire to travel.

J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. are acting as joint bookrunners for this offering.

Underwriters have 30 days to purchase up to an additional 1.5 shares to cover over-allotments.

The shares will trade on the New York Stock Exchange under the ticker "SVN."

2009-11-20 09:45:34