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Interest Soars Sky-High in Visa's $18B IPO

Record-breaking debut could mark turning point for markets

By Rob Quinn,  Newser Staff

Posted Mar 19, 2008 8:43 AM CDT
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(Newser) – Visa pulled in almost $18 billion in its initial public offering yesterday, the San Francisco Chronicle reports. The credit card company's IPO was the biggest by far in US history and the second biggest ever. The $44-per-share price investors paid was $2 higher than the company's highest estimate, and the price is expected to rise steeply when the shares hit the New York Stock Exchange this morning.

The troubled markets made Visa's IPO something of a gamble, but its roaring success could now boost market confidence battered by the credit crisis—from which Visa, a transaction processor rather than a lender, has been largely immune. "The business model is fantastic,'' a consultant noted. "They don't take the risk of extending credit to customers.''

Several VISA credit card offices are shown in Foster City, Calif., Saturday, March 15, 2008.
Several VISA credit card offices are shown in Foster City, Calif., Saturday, March 15, 2008.   (AP Photo/Paul Sakuma)
Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc. sold 406 million shares at $44 apiece yesterday to raise nearly $18 billion.
Overcoming the jitters that have battered many of the lenders that issue its cards, Visa Inc. sold 406 million shares at $44 apiece yesterday to raise nearly $18 billion.   (AP Photo/Paul Sakuma)
A VISA credit card sign is posted with other credit card companies at an ATM bank machine in San Jose, Calif., Sunday, March 16, 2008.
A VISA credit card sign is posted with other credit card companies at an ATM bank machine in San Jose, Calif., Sunday, March 16, 2008.   (AP Photo/Paul Sakuma)
A Visa card holder holds up his card next to a credit card reader at Best Buy in Mountain View, Calif., Monday, Feb. 25, 2008.
A Visa card holder holds up his card next to a credit card reader at Best Buy in Mountain View, Calif., Monday, Feb. 25, 2008.   (AP Photo/Paul Sakuma)
Several VISA credit cards are shown in Palo Alto, Calf., Saturday, March 15, 2008.
Several VISA credit cards are shown in Palo Alto, Calf., Saturday, March 15, 2008.   (AP Photo/Paul Sakuma)
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Visa IPO a windfall for banks, Wall St.
New York Times

Visa could rise 10% on first day of trading
Reuters

IPO could help jump-start markets
CNBC

 
stock market • New York Stock Exchange • IPO • credit card • credit crisis • Visa

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