Visa, a Credit Card Company, going to public next month, March 19, 2008. This company is formed by the several bank, so many banks own the stock of Visa. Unlike Amex and Discover Card, it does not provide the Credit Card, it just provide the network to verify the card and for that they charge small fees. Its main competitor is MasterCard, which went Public last year.
Here is some analysis I have made:
They have 967 Outstanding Shares, out of which they are going public with 406M Class A share.
The offering price is between $37 and $42. So they are collecting around $17B from the public and insitutional investor; which makes the biggest IPO in the history of United States and Second in the World. They will use some fund to pay of the Lawsuit. JP Morgan, BofA, Goldman Sachs, Citigroup and Merill Lynch are the underwriter.
Last year, they have Revenue of 5.2B and lost 861M . Last Qtr they have 1.5B Revenue and made 424M in Profit. Their Revenue grew by 100% and Profit grew by 76%. This is just like when Google went public. They are planning to pay dividend of 42c/Share.
IMO, it is a must own stock for a very long time.
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