Visa IPO - Largest in US history at FinGad.com

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Categorie: IPO / Secondary Offering
Submitted 9 months ago by

Franeddu

On Monday, Visa proposed initial public offering (IPO) of almost half of its shares that will reap a windfall in coming months. The IPO could very well be the largest in US history, valued nearly $18.8 billion. The proposed price range is between $37 and $42, Visa’s offering of 406 million Class A will net $16 billion and the company might sell additional 40.6 million shares to meet demand. The Visa card use is growing. According to Securities and Exchange Commission, Visa will trade on the NYSE under the symbol V. Mega-sized deals are comparatively less in the US. Underwriters sharing fees could exceed $350 million. In general for large IPOs the underwriters rake in fees of 1.75% to 3% of the deal value. Despite the turmoil in the financial sector and bearish environment in the stock market this year, Visa stakes its future as a public company and the IPO bound to stoke bullish sentiment. Fifteen investment banks will distribute the deal including J.P Morgan. The IPO is expected to begin trading at the end of March. An IPO of MasterCard in 2006 was a huge success, as its shares are still worth five times their value on flotation. Visa too expects a similar benefit. The long-term prospect for both companies is good as the society is moving towards cashless. By 2011, 55% of transactions in the US will be cashless, according to Nilson Report. The trend towards paperless money is not confined to US and Europe, and Visa IPO will provide an a... More...

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2 comments ↓

#1 | Narasimhan @ 9 months ago Owner at Krish Systems User Rank : 1905 Portfoilo Balance: $498,940.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: I look forward to the subscripiton details.
#2 | Franeddu @ 9 months ago User Rank : 26 Portfoilo Balance: $50,000.00 Comment Rating: 0 Flag Comment Spam | Miscategorized | Prohibited: Guess it is worth waiting for ... All the best!

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