Visa Going Public
Visa announced that it will be issuing 406 million shares between $37 and $42 making it quite possibly the largest IPO we have ever seen. In fact if it raises the $19 billion it will be the size of the second and third largest IPO’s combined. When issued (rumor has it October) it will trade under the symbol V. This might turn out to be one of the only gifts the market gets this year…it is a must buy. If Mastercard’s IPO is any indication of what we have to look forward to then Visa should grow five-fold in no time flat.
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Although it might be a good buy, it will NEVER reach the heights of MasterCard. The banks will NOT leave as much money in the table this time!
Visa will be trading at roughly the same P/E than MC, so there is no reason to expect a spectacular increase in the price.