UPDATE 2-Hotel chain La Quinta makes subdued debut in crowded IPO market
* Shares open at $16.75, below IPO price of $17
* Blackstone-backed company valued at about $2 bln
* IPO raises $650 mln (Adds details on the IPO market)
By Neha Dimri and Anil D'Silva
April 9 (Reuters) - Shares of Blackstone-backed hotel chain La Quinta Holdings Inc made a subdued market debut as investors took the view that the stock was fully priced in a crowded IPO market.
La Quinta's shares, which priced below the expected range at $17, fell as much as 4 percent in early trading before recovering their losses to trade up more than 2 percent.
At $17, the company is valued at just over $2 billion.
More than a dozen companies, including auto lender Ally Financial Inc, are expected to price share offerings this week, making it the busiest week for IPOs since 2006.
"(La Quinta's) offer price is reflecting a very high price-earnings ratio for a company in a very competitive industry," said Jay Ritter, an IPO expert at the University of Florida. Continued...