Home Inns jumps 59% on NASDAQ IPO

Shares of China's Home Inns & Hotel Management rose as much as 72% in their Nasdaq debut Thursday before settling at US$22.50 a share, 59% higher than their $13.80 pricing Wednesday, Reuters reported. The first-day surge in share price for Home Inns, which operates 82 budget hotels in China, was the second best of the year behind Chipotle Mexican Grill's 100% first day jump in January, according to data tracker Dealogic. Home Inns traded at more than 100 times annualized earnings, far above the much larger US-based Choice Hotels International, which trades at about 28 times earnings. Home Inns raised more than US$109 million Wednesday with an offering of 7.9 million American depositary shares (ADS) that sold for US$13.80 each, compared with a forecast range of US$10-12. Each ADS represents two ordinary shares. Rival Jinjiang International plans to raise up to $300 million in a Hong Kong listing later this year.