The San Francisco-based credit card company is offering 406 million shares in the price band of $37-$42. This Visa IPO is an attempt to raise just below $16 billion, if we take the average price of the price band. Definitely, it will exceed the $11 billion raised by AT&T Wireless in 2000 – which was the biggest IPO ever in the history of American stock exchanges – Visa IPO is et to change that benchmark.
Interestingly, though the Visa card is in the business of payment gateway and transaction processing, there are still doubts about the long run. The PE ratio of VISA offering is really high at 30, as compared to that of MasterCard which was at 11 when it was listed on stock exchanges.
Related: Read the detailed Review of Visa IPO & Should you apply for an IPO?
Some individuals also have doubts about the long run of VISA and MasterCard. One individual has even left a comment as follows: “Credit Cards will be a thing of the past in a few years. Biometrics will eliminate the need to carry plastic and eliminate the possiblity of credit card fraud and thief, identity thief too. Whole new biometric based transaction networks will replace VISA and MASTERCARD. That's why the banks that own VISA are cashing in on it now. It has been a cash cow for them but it won't be worth jack soon.”
| Anyways, everyone has a different opinion and perception. The Visa IPO is set to be listed on 20th March. Lets see how this IPO performs. | Table of Contents |
1 comment:
Hi nice blog.I am from brazil ,I came to know about Russian universities. What is the procedure to apply for student russian visa .
Post a Comment