NEW YORK (AP) - Shares of Diamond Resorts International Inc. surged in their first day of trading on the New York Stock Exchange.
The timeshare company's stock added $1.10, or 7.9 percent, to $15.10 in Friday morning trading. The shares priced at $14 per share, below the expected range of $16 to $18 per share.
Diamond Resorts raised $217 million from its initial public offering of 15.5 million shares. The Las Vegas company is selling 14 million shares, while a selling stockholder is selling 1.5 million shares. Diamond Resorts won't receive any proceeds from shares sold by the selling stockholder.
Diamond Resorts and the selling stockholder are giving the underwriters a 30-day option to buy up to an additional 2.1 million shares from the company and up to 225,000 additional shares from the selling stockholder to cover any excess demand.
Diamond Resorts said in a regulatory filing that it plans to use its net proceeds from the offering to repay some loans and for other purposes.
Shares are trading under the "DRII" ticker symbol.
The offering is expected to close on Wednesday.
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