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Checking out: La Quinta shares fall on first day on Wall St.


Shares of La Quinta started trading Wednesday, falling 1.9% to $16.72, after having to reduce the initial price.


The hotel chain with more than 800 locations, raised $650 million by selling 38.3 million shares at $17. The problem was that is below the $18 to $21 a share offering price the company originally forecasted. And seeing the shares fall further is a sign of weakness, making the deal the latest to 'break,' or fall below the offering price. Shares of La Quinta are down $0.28 to $16.72.


The La Quinta deal is the biggest brand name to test the IPO market, in what's expected to bring a flurry of a whopping 16 IPOs this week. That would make it the busiest week since Nov. 2007.


The company had been under the ownership of private equity firm Blackstone. Investors are concerned that much of the deal's proceeds go to selling investors, not the company.


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