Visa IPO to Help Recapitalize U.S. Banks

The Visa IPO, which could raise as much as $18.8 billion, is going to dwarf what until now was the largest IPO in US stock market history, AT&T Wireless's $10.6 billion offering at the height of the dot-com boom in 2000. It will also help a great deal in terms of raising capital to shore up the balance sheets of Visa's bank shareholders. But it won't be the biggest IPO of all time: that honor still belongs to ICBC's $19 billion offering at the end of 2006.

Of course, if a bank-owned company goes public, this is inevitable:

Fifteen banks are arranging Visa's share sale, including JPMorgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp. and Citigroup Inc.

Sounds like a recipe for confusion to me, although I'm sure they'll work it out somehow.

Related: More on the Visa IPO

Comments

[Forward Obs...:]

Visa is looking ahead. The IPO should cover a good portion of the defaults from the growing number of folks that don't have the funds to pay their debts.

2008 Feb 25 01:53 PM

[john1:]

This is amazing. Let's sell the credit card biz, JUST BEFORE the peasants totally max them all out and default en-mass, too WHO? I know, I know, it'll be an amazing sale, but but but still... you can't make stuff up like this.

2008 Feb 25 03:35 PM

[jcrash:]

Why are they gonna default, bozo? I love the hyperboles I get on here. Someday, perhaps the sky will fall. Until then, meh.

2008 Feb 25 03:40 PM

[john1:]

I guess you're right. They ALL aren't gonna default. But, assuming your peasants are max'ing out their credit cards at record rates; to pay for their mortgages, to pay for their lines-o-credit, to pay for their car loans... Which, I assuming must be true IF - as was published someplace else - credit-card debt has shot-up over 300%, and the 401k's are being drained.... Well, I donno, perhaps all this credit is NORMAL, and the world WILL just keep funding you guys, and your peasants will blissfully spend every last cent they've got on Walmart trinkets and designer kitchens, and they WON'T ever save money ever again because we're, like, totally, like -dude, in a whole new pair-o-dimes now... But, BUYING a CREDIT CARD company at the TOP of a CREDIT BUBBLE just seems a bit insane to me.

2008 Feb 25 07:37 PM

[erics99:]

Since when does Visa have any credit/debt risk? They make money based on the growing transition from paper to plastic, especially overseas.

2008 Feb 25 08:39 PM

[Vikram12:]

Visa would benefit from increase in money multiplier and money supply and also capitalizing on the potential increase in usage of plastic money. they account for about 10% of global consumer spending. do not see how recent defaults can dent valuations of visa. As long we have a justifiable projections in terms of growth valuations should look justified... their consumer debit volume is much as consumer credit volume in the US and still picking up in developing countries... how can we forget cash from ATMs they also account for a huge volume..... if there happens to be a slowdown in credit there is a huge potential in terms of debit transactions outside the US which dwarf the credit volumes......

2008 Feb 26 01:38 AM