(Corrects paragraph 4 to change number of outstanding shares
April 17 Shares of Sabre Corp, the
airline ticketing technology provider that also owns online
travel agency Travelocity, rose as much as 7 percent in their
market debut after the company sold fewer shares than expected
in its initial public offering and priced them below the
China's Weibo Corp, which is set to start trading
later on Thursday, has also cut the size of its IPO and priced
shares at the lower end of the expected range.
Sabre's shares, which were priced at $16 each, rose to a
high of $17.17 in early trading on the Nasdaq. They gave up some
of their gains to trade up 4 percent at $16.60 by 1100 ET.
At the high, the company had a market value of about $4.44
billion based on the 258.7 million outstanding shares listed in
its IPO filing. Underwriters have the option to buy more shares.
Sabre, spun off from American Airlines' parent AMR Corp in
2000, was taken private by TPG Capital and Silver Lake Partners
in 2007 for about $5 billion including debt.
The company had debt of about $3.64 billion as of Dec. 31.
Texas-based Sabre raised $627.2 million selling all the 39.2
million shares, lower than the 44.74 million shares it initially
planned to offer.
The recent selloff in U.S. stocks after a strong start to
the year has hurt companies looking to go public.
The IPO comes at a time when the global travel and tourism
industry is growing at a rapid rate. Technology spending by air
transportation and hospitality businesses is expected to grow
about 17 percent to $70 billion between 2013-2017, according to
research group Gartner.
TPG, Sabre's biggest shareholder, will see its stake falling
to about 37 percent after the offering from 45.2 percent. Silver
Lake's stake will drop to 22.8 percent from 27.8 percent.
Morgan Stanley, Goldman Sachs, Merrill Lynch, Pierce, Fenner
& Smith and Deutsche Bank were lead underwriters to the
(Reporting By Neha Dimri in Bangalore; Editing by Ted Kerr and