Monday, February 25, 2008

More Details Emerging on Visa (V) IPO

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More news out this morning on the very eagerly (at least from this corner) VISA (V) IPO; an issue we've been talking about for many months. This is going to be quite the enormous issue, so like I've said in the past, it won't provide the real magnificent upside that Mastercard (MA) did simply because there was no established bar (via publicly traded competitor) when Mastercard began trading.
  • 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 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.
  • Mastercard raised $2.39 billion in its IPO nearly two years ago. Shares of Mastercard have risen fivefold since going public and are now trading at more than $203 each.
Long Mastercard in fund; no personal position

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