Visa hopes to raise $10b in IPO
Visa Inc. hopes to cash in on its massive credit and debit card network by raising up to $10 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 didn't specify how much stock would be sold or at what price per share. A proposed ticker symbol wasn't listed either. All that information will emerge in future filings leading up to the IPO.
If Visa realizes its $10 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 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 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.
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