Extended Stay America (STAY), the largest owner and operator of company-branded hotels in North America, raised $565 million by offering 28.3 million shares at $20, within the range of $18 to $21. Based on the company’s pricing terms, Extended Stay America commands an implied market capitalization of $4.2 billion, which is large enough to qualify the company for inclusion into the Renaissance IPO ETF at the market’s close on November 19th, 2013.
The Renaissance IPO ETF is a portfolio of U.S.-listed newly public companies that provides exposure to securities under-represented in core U.S. equity portfolios. IPOs that pass Renaissance Capital’s formulated screening process are weighted by investable market capitalization, capped at 10% and removed after two years.