Visa IPO: Large and in Charge

In April 2000, AT&T Wireless (T) unveiled the largest IPO in American history, raising $10.6 billion. A little more than a year later, Kraft Foods (KFT) released an IPO that raised $8.7 billion, pushing the new stock issue up 40% in one year.

And Mastercard Inc. (MA) recently made investors gains of 463% in the biggest IPO since 2004, worth $2.4 billion…

Visa's (V) IPO might be your chance to get into the next biggest IPO. Something groundbreaking is about to happen in the land of initial public offerings.

Visa Inc. is about to have what could be the biggest IPO in American history, planning to raise $19 billion.

Instead of being a credit lender, Visa is a credit-card processor. Visa’s cards are a way to diversify your portfolio globally, as more people in emerging markets are using plastic instead of cash for purchases.

Visa plans to have 406 million shares of stock, between $37 and $42 per share, available in the IPO. And 40.6 million shares will be available to underwriters to meet demand of the largest card processor in the world.

Visa will offer its stock shares under the ticker symbol V. If you get a chance to get your hands on any shares, I would go for it. After all, institutions will be the biggest buyers of this stock. And you can bet that successful investors like Warren Buffett will want a piece, too.

If you can be patient, this could be even better than MasterCard!

Disclosure: none

Comments

[I don't think so]

What are you smoking? This is not the kind of thing Buffett would buy

[richandmer]

Just curious why it will be a good stock to own? You must be saying that they will have the earnings to support your theory. Please provide the information to support your article.

[Vegasjoe]

When is the IPO? October, 2008? Why has the Discover spin off failed? Why is AMEX stuck in the tank? Yes, M/C has been a great success, but it has executed. Can Visa's management?

[Kunst]

Looks like a short opportunity to me.

[R. Khan]

Would Canadians be able to access this IPO through the Canadian brokers, such as TD Waterhouse?

[MeanWS6]

Khan - I think you can get into the secondary through ETrade

Runst - What are your fundamental indicators for calling V a short? Would like to see how the shorts look at V as well - thanks

VegasJoe - I don't even know what to say to your post. Good laugh:-)

[Tarique]

With banks such as BAC, C along with many others who hold stakes in Visa, they are obviously going to hype it to raise as much capital as possible. Yes, Visa is a solid investment (I am making that assumption on basic knowledge and not in depth analysis, let’s say it’s a ‘gut’ feeling). Visa won’t be another MasterCard for example MC went public with 11 times earning and Visa is going to be around 35-40 times earnings. It is wrong to compare Visa and MasterCard.

Keep in mind every one and their grandma is talking bout getting in on Visa’s IPO, I hope you know what that means.

Before someone criticizes me for this post, all I have to say to you is yes I am wrong, no I don’t know what I am talking about, yes you right and have all the answers.