VISA IPO :Visa files for IPO
VISA IPO :Visa files for IPO
Visa, the biggest U.S. credit card network, said in a regulatory filing on Friday that it hopes to raise $10 billion in an initial public offering.
Visa said it plans to deposit a portion of the company’s proceeds from the IPO into an escrow account to pay settlements or judgments related to litigation settlements.
Visa’s IPO is hotly anticipated by investors. Visa is following in the footsteps of rival MasterCard , which has more than quadrupled since the company went public in May at $39 a share.
Visa posted net income of $771 million on operating revenue of $3.73 billion for the nine months ended June 30, according to the Securities and Exchange Commission filing.
Visa did not disclose the number or expected price range of the shares it plans to offer. The company noted that the total offering price was estimated solely to calculate its registration fee and may change.
Will post more details about VISA IPO Allotment Status , Analysis , expected listing price and other details about visa ipo soon.
visa ipo soon…..i need visa ipo anaysis …please get me research reports of visa ipo
NEW YORK (Reuters) - Analysts predict that next year’s U.S. initial public offerings will include a steady stream of activity, including credit card issuer Visa Inc’s $10 billion IPO.
Visa, the biggest deal so far in 2008, is coming to market after MasterCard Inc’s (MA.N: Quote, Profile, Research) stellar $2.4 billion 2006 IPO.
The company said late on Friday its plans to list the shares on the New York Stock Exchange under the symbol “V” V.N, according to an amended registration statement with the U.S. Securities and Exchange Commission. It has not disclosed how many shares it will offer, or the expected price.
“It will certainly do well, as MasterCard has done incredibly,” said Scott Sweet, managing director of research firm IPOboutique.com, who expects the Visa offering early in the year.
Hopes are high that the world’s largest credit-card processor will take the lead of its smaller rival MasterCard Inc, which has seen its share gain more than 440 percent since its initial IPO price of $39. MasterCard shares closed at $212.35 on Friday.
Things have been a bit bumpy lately for Visa, as reflected in its Friday disclosure that the company posted a loss in fiscal 2007. The company had a $1.1 billion operating loss, while operating revenue rose 33 percent to $5.2 billion. The loss included nearly $3 billion in reserve for outstanding litigation. Continued…
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abda 09-11-07, 08:41 PM (EST)
“Visa IPO”
Does anybody know when Visa will go public?
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RE: Visa IPO, sircivic1975, 01:40 PM, 09-13-07, (1)
RE: Visa IPO, salo0omi, 04:31 AM, 09-14-07, (2)
RE: Visa IPO, smiley, 04:10 PM, 09-24-07, (5)
RE: Visa IPO, Crazygurl13, 12:27 PM, 09-14-07, (3)
RE: Visa IPO, 051colin, 12:50 PM, 09-19-07, (4)
RE: Visa IPO, Crazygurl13, 06:34 PM, 10-03-07, (6)
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sircivic1975 09-13-07, 01:40 PM (EST)
1. “RE: Visa IPO”
Not officially yet but rumour has it Jan 2008, not sure about inital price range??
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salo0omi 09-14-07, 04:31 AM (EST)
2. “RE: Visa IPO”
i am new in IPO…i want to participate in Visa IPO…
can anyone tell me,
what are the procedures and steps, plz?
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smiley 09-24-07, 04:10 PM (EST)
5. “RE: Visa IPO”
My guess is that unless you have a bundle and can get an account with some big broker you won’t have much chance of getting in on Visa IPO. Also, I am expecting it to price very high so if you do get shares from any broker at high price, you may not make much money because it won’t pop up very much. Now that said, Etrade is the only broker I know of that participates in IPO’s that the little guy can get in on. There is another I think Hambritch or something like that that will participate in some of the offerings.
The problem with IPO’s is that when there are good issues that have good potential for a pop, it is hard to get in on those. Even so, sometimes one can get shares at offering price from time to time. YOu can almost always get the dogs. I talked with Etrade and they told me they give them on a first come first serve basis but it is hard for me to believe. It may be so but sooo many times I have got my issue request very soon after the issue posted and didn’t get shares. Anyway, if you are burning to get in on IPO’s I wish you good luck in trading and hope you make s bundle and I hope I can make two bundles. If you have trading in your blood, takeovers and acquisitions are good profit makers many times. Another one is Day Trading. Most people loose in day trading but if you are one of those that have the talent, you can make a bundle in it. Etrade requires a min of $20,000 to daytrade.
Good luck but remember, you may loose your ##### in any stock trading. I did at first but did lots or reading and prictice trading and have made some and know it is like getting up on a tightrope. I may loose my xxx any day or time and crash to the bottom when I am invested.
Smiley
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Crazygurl13 09-14-07, 12:27 PM (EST)
3. “RE: Visa IPO”
Hey Sal, I will try and explain my way but there are better experts in here. Get you a broker, or go Online. For example. I am w/Sharebuilder. It isn’t perfect, but its inexpensive in fees. Belonging to it means that without an expensive broker, you might have to pay a little more when it is open on Sharebuilder. For example. When I was ready (early) in the morning for VMWare, it had already been trading for an hour. The lucky early buy In’s only paid something like twenty-some dollars. I got it as soon as it opened @51.00. I have made money on it twice and now own it to keep/hold. I actually cut out a story on the Visa IPO months ago. There is a full length paragraph, but here is one sentence. Although Campbell and Visa restructuring committee head Peter Hawkins said it is too early to discuss details of the IPO, they expect the transaction to take place in about 12 to 18 months.
I printed the story up on 10/14/2006 GoodLuck!
P.S. I LOVE VMWare
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051colin 09-19-07, 12:50 PM (EST)
4. “RE: Visa IPO”
Thu Sep 13, 2007 5:14pm EDT
NEW YORK (Reuters) - Visa said on Thursday it won approval of a registration statement from the U.S. Securities and Exchange Commission, a key step in the world’s largest credit card network’s plan to go public by early next year.
Visa first outlined plans last October to float a majority of the company, now owned by its 13,400 member banks, in an initial public offering to be held within 12 to 18 months.
In a letter to the member banks, Chief Executive Joseph Saunders called approval of the registration statement “critical” to the restructuring and said Visa is pursuing an “aggressive timeline” to obtain approval.
The restructuring contemplates a new publicly traded entity, Visa Inc, that will combine Visa USA, Visa International and Visa Canada. Another affiliate, Visa Europe, will remain a membership association and take a minority stake in Visa Inc.
San Francisco-baed Visa has said it intends to use IPO proceeds to fund expansion and an escrow account to help cover potentially hefty legal bills.
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Crazygurl13 10-03-07, 06:34 PM (EST)
6. “RE: Visa IPO”
Soooo H-a-p-p-y you posted this! I’m savin’ myself for Visa, next!!! Still Lovin’ VMware
Visa provides IPO details
By Jeremy Simon
Visa filed documents with the Securities and Exchange Commission on June 22, 2007, regarding plans to restructure and combine its global operations ahead of an upcoming initial public offering.
Visa outlined its “restructuring” plan to establish a new corporation known as Visa Inc. via mergers involving Visa USA, Visa Canada and Visa International.
In its registration statement with regulators, Visa indicated its intention to sell 51 percent of its 775 million shares outstanding to the public later this year, with the remaining stock continuing to be held by Visa’s member banks.
At present, Visa is a private, member-owned association for financial institutions.
Visa said its own IPO should accelerate its expansion, help address legal claims and bolster access to capital.
Additionally, Visa disclosed financial results for Visa Inc., which saw a net profit of 68 cents a share on operating revenue of $2.36 billion over the six months ended March 31, 2007.
Visa, the globe’s leading credit card network, plans to follow in the footsteps of rival MasterCard in going public. MasterCard raised $2.39 billion in May 2006 with its IPO, and its stock has surged in value since that time.
Elsewhere, Morgan Stanley intends to spin off its Discover credit card business at the end of June.
Published: July 3, 2007
For more news about credit cards please see our News section.
Visa IPO Should Pose Challenge to MasterCard
posted on: October 12, 2006 | about stocks: MA
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Excerpt from our Wall Street Breakfast, a one-page summary of this morning’s key market-moving and stock-moving stories:
Visa IPO Should Speed Innovations in Payments Rivalry With MasterCard [Wall Street Journal]
Summary: After processing $4 trillion in credit card purchases last year, Visa International has decided to match rival MasterCard and go public. With more than 60% of the worldwide consumer credit market (as compared to MasterCard’s 26%), Visa’s upcoming IPO, which is slated to occur in the next 12-18 months, should fetch a market value of upwards of $12 billion. In comparison, MasterCard’s market value was under $10 billion at the time of its IPO. Going public will allow Visa more operating flexibility as it is currently under the ownership of some 20,000 banks. The IPO is also expected to accelerate Visa’s ability to offer e-commerce solutions as it attempts further inroads to the global cash and credit markets.
Related links: • An In-Depth Look At MasterCard’s IPO • Was The Mastercard IPO Underpriced? • MasterCard and Visa Crack Down on Security • Shhhh! - eLong, Visa in partnership - but don’t tell anyone • Misreading American Express Earnings
Potentially impacted stocks and ETFs: MasterCard (MA), American Express (AXP)
Visa files papers for initial public offering; sets target of raising $10 billion
SAN FRANCISCO (AP) - Visa Inc. hopes to cash in on its massive credit and debit card network by raising up to $10 billion (euro6.81 billion) in what would be the second largest initial public offering of stock in U.S. history.
The San Francisco-based company disclosed its target amount late Friday in documents it filed with the Securities and Exchange Commission, a significant step in a hotly anticipated IPO expected to take place early next year.
Visa did not specify how much stock would be sold or at what price per share. A proposed ticker symbol was not listed either. All that information will emerge in future filings leading up to the IPO.
If Visa realizes its $10 billion (euro6.81 billion) goal, it would be raising the second most ever generated in an IPO by a U.S. company, according to data maintained by the research firm Renaissance Capital.
AT&T Wireless Group raised $10.6 billion (euro7.22 billion) in an IPO completed in April 2000 near the height of the dot-com boom.
MasterCard Inc., Visa’s next largest rival, went public 18 months ago, raising $2.4 billion (euro1.63 billion) in the 17th largest IPO in U.S history, according to Renaissance Capital. MasterCard’s shares have climbed by nearly fivefold from their IPO price of $39, closing Friday at $193. As they gauge the interest in an IPO, the companies sometimes revise their fundraising goals dramatically.
For instance, software maker VMware Inc. initially estimated it would raise up to $100 million (euro68.11 million) when it filed its IPO papers in April. The company wound up raising more than $1 billion (euro680 million).
The demand for Visa’s stock is expected to be high because the company’s revenue figures to steadily grow as consumers increasingly pay for merchandise with credit or debit cards instead of checks or cash. Visa’s payment processing network is by far the largest in the United States. Last year, the company processed 44 billion transactions totaling $3.2 trillion (euro2.18 trillion), according to Friday’s SEC filing. MasterCard processed 23.4 billion transactions totaling $1.9 trillion (euro1.29 trillion).
Visa makes most of its money from the fees it charges card issuers and merchants for using its network. During the first nine months of this year, the company earned $771 million (euro525.1 million) on $3.7 billion (euro2.52 billion) in revenue.
Because it acts as an intermediary, Visa doesn’t sustain losses when consumers don’t repay the debts run up on credit cards bearing its brand. Those liabilities instead fall to the banks that issue the cards and set the terms of repayment.
Most of Visa’s major stockholders are banks. They include: J.P. Morgan Chase & Co., which owns 23.3 percent of the company’s Class B Stock; Bank of America Corp., 11.5 percent; National City Corp., 8 percent; Citigroup Inc., 5.5 percent; U.S. Bancorp, 5.1 percent; and Wells Fargo & Co., 5.1 percent. Besides being a major stockholder, J.P. Morgan also is Visa’s largest customer. The New York-based company accounted for 10 percent of Visa’s revenue during the first nine months of this year.
The SEC documents did not indicate whether any of Visa’s major stockholders intend to sell portions of their stakes in the company.
Visa’s filing came just two days after the company rid itself of a potential albatross by agreeing to pay up to $2.25 billion (euro1.53 billion) to American Express Co. to settle a 3-year-old lawsuit alleging Visa engaged in illegal practices to stifle competition. Visa is responsible for $2.07 billion (euro1.41 billion) and another $185 million (euro126 million) will be contributed by five member banks named in lawsuit, according to the SEC filing.
All the costs of the American Express settlement ultimately will be covered Visa’s member banks. Visa is still fighting a similar antitrust lawsuit filed by Discover Financial Services. That case is scheduled to go to trial next September.
An unspecified portion of Visa’s IPO proceeds will be deposited in an escrow account to cover possible settlements and legal judgments, according to Friday’s filing. Visa will also use some of the money for general purposes.
The filing also disclosed that Visa has already paid its chief executive, Joseph Saunders, $10.2 million (euro6.95 million) in bonuses this year on top of his annual salary of $950,000 (euro647,000). Saunders, who was named CEO six months ago, has promised to remain on the job until May 15, 2009. - AP
Visa IPO Coming
Posted By Tate Dwinnell | Subscribe in a reader
The Visa IPO took another step towards success today after the SEC gave its restructuring plan the go ahead. Now the company will seek approval from member financial institutions which would pave the way for an IPO early next year. The restructuring involves Visa International, Visa USA and Visa Canada becoming subsidiaries of a single company. Visa Europe will remain a membership association and will become a licensee of, and own a minority interest in, Visa Inc.
The biggest beneficiaries when Visa goes public
When is the visa ipo coming public?