Visa IPO Could Be Largest In U.S. History

(AP)  Visa said Monday it could raise almost $19 billion from an initial public offering, which would easily become the largest IPO in U.S. history.

San Francisco-based Visa Inc. said in a Securities and Exchange Commission filing it will offer 406 million shares at $37 to $42 per share. There will be an option for its underwriters to buy an extra 40.6 million shares to cover any excess demand.

The filing also showed rival credit card companies MasterCard Inc. and American Express Co. trailing Visa in transactions in 2006.

The Visa IPO, even at midpoint price, would surpass the $10.6 billion AT&T Wireless raised in 2000. It would be almost as big as the two largest past deals combined - AT&T's offering and Kraft Foods' $8.7 billion offer in 2001.

Visa would follow Mastercard from being a privately held interest to a publicly traded company. Mastercard raised $2.39 billion in its IPO nearly two years ago.

At a midpoint price, Visa could raise about $15.6 billion, or more than $17 billion if underwriters exercise their option to buy the entire lot of 40.6 million shares.

Shares of Mastercard have risen fivefold since going public and are now trading at more than $203 each.

Yet Visa's offer comes at a time of ebbing appetite for new shares. Mastercard shares have fallen more than 5.5 percent since the beginning of the month.

Visa made its initial IPO filing in June with the SEC. The shares will be listed with the New York Stock Exchange under the ticker V.

[djarmapunk]

"Any one buying this IPO during this credit crisis would be simply Insane with defaults at an all time High and getting worse this will simply tank and cost Billions in loss''''s crazy......."

Sorry, but the Bankers have nice little arrangements with our loyal Government officials. They won''t lose any money in the coming crash...the Fed will bail them out and we''ll all pay for it through inflation and increased National debt. If you''re smart like me you''ve used their credit cards to build a rediculous credit limit, but pay them off every Month avoiding paying any interest. I plan to max my credit out buying every share I possibly can of this stock in the IPO. When the Stock matures in two years making me 500% profit I''ll sell it all off and File bankruptcy...just like they do. After I buy my own Island in the South Pacific and declare it a Country, I''ll pretend to be building a nuclear power plant which I''ll shut down after the United States sends me $40 Billion dollars in subsidized aide. If I''m not exhaiusted by then...I''ll open my own bank and offer all of you a new credit card at 8% interest! Ha Ha Ha..!

[shanev137]

Visa ready to sell itself out.

The credit markets must really be hurting bad.

[wardoglrs]

The answer is simple. And the goverment wont admit it

http://www.ideachannel.tv/

[sharncedar]

It is our money that this IPO will be giving to Bush''s rich friends. It starts from the Fed and the money creation cycle, then flows to the phony stock market, and then into the pockets of the world''s wealthiest, Bush''s friends like the Saudi princes. And in the process our wages and savings are devalued.

The officers of Visa are the scum of human existence - we owe them only a speedy trial and a speedy disposition. We will not be free until people like this are swinging gently in the breeze. There are last they can do no more harm to this nation. Let us prepare the cases, keep the evidence, and when the time comes be ready to step forward and serve on the jury. To clean our nation is a great thing. We will rise again, when these scum have fallen forever back into their darkness.

[oscarez]

This from BBC news web page:

"The share offering would be the culmination of a restructuring process that began in October 2006.

It is currently owned by banks that issue cards carrying the Visa symbol.

Of the net proceeds, $10.2bn from the listing will be paid to the banks who own the network.

Meanwhile $3bn will be set aside to cover the costs of a variety of litigation that Visa is currently involved with."

This IPO is so the banks can get out from under Visa. The banks are going to do well on the backs of the Visa users.

[sevenveils]

I am suspicious. What is the motivation for a private premier company operating profitably in a lucrative market and flush with cash want to go public and open its Kimona, sharing its financial information, profits (and losses) to the public?

The only people who would truly benefit are the senior private stock holders who wish to cash out a large number of their shares with inflated prices gained by the excitement of the inital IPO.

[hypnotoad72]

lovegetpeace - "For life, there''s ____ card."

We all know children look up to parents. That''s where they get their skills and manners from. (or not)

Our culture also lambastes those who don''t follow our order. If my car doesn''t look pristine, I''m automatically a bad person. Looking nice is one thing, but what does our culture say? "For life there''s ___ card." To buy overpriced clothing made offshore because cheap labor is better than anything approaching quality. Cue card ***.

Sorry to sound cynical; to get to the point, those in the media have their part in all this too.

[cbsblogger]

This country has been propagandized by the money changer usury crowd into believing that credit is a good thing that gives immediate gratification...so they can put you into indebted servitude.

We can''t just blame the people as our government bought into deficit spending from the European central bankers in 1916.

http://video.google.com/videoplay?docid=-515319560256183936

[hypnotoad72]

At the interest rates doled out, they can afford lots of things.

What does it take to start a credit card company? :)

After all, the days of one parent having a job that allowed them to raise a family PROPERLY*, pay off the house, and not NEED the blasted plastic are LONG gone. To the factor of roughly 40~45 years?

* "properly" is another story altogether, but today''s parents, who were the latch key sob stories of the 1980s, make for very interesting parents. Especially when they ask kids to do things instead of telling them to do it and letting the brats run around and do as they please; the concept of ''civility'' unknown to them. As if that matters anymore either...

[lovegetpeace]

Folks,
You need cash, credit, or assets to spend so this economy does not fall into the 4th Great Depression.

We all know Americans do not have cash. The average credit card debt is $10,000 plus. The tax rebate in May is only to pay down the credit card debts.

The last option is for American to sell their assets such as their homes to foreigners who already own a great part of America with the $10 Tillions Federal debt.

Finally, the 4th Great Depression is around the corner.