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Shares of Chinese discount hotel chain 7 Days Group Holdings Ltd jumped as much as 28.6 percent in their New York Stock Exchange debut on Friday.
The American depositary shares stood at $13.70, up 24.6 percent, in morning trading after rising as high as $14.15 earlier.
The ADSs priced at $11, the top of the estimated range of $9 to $11, in the chain's initial public offering on Thursday. Guangzhou-based 7 Days raised $111.1 million in the IPO.
The underwriters of the IPO, which was managed by J.P. Morgan and Citi, have an option to buy 1.5 million additional ADSs.
7 Days reported revenue of $121.7 million for the first nine months of 2009, and an operating profit of $6.9 million. A $9.3 million interest expense during the period caused it to post a net loss of $1.4 million.
The company has posted net losses in each of the last four years.
The fast-growing chain had 283 hotels in China as of Sept. 30, up from only five in 2005. Its hotels have 28,266 rooms.
7 Days is the ninth Chinese company to list on a U.S. exchange this year.
(Reporting by Phil Wahba; editing by John Wallace)
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