Mar 19th, 2008
Visa Stock. Thats right, right now you can own it. Visa stock went on sales today for $44/share which is more than the expected $35-$42/share that was expected but you can hardly blame them for starting it a bit higher considering the hype that has surrounded the IPO.
So far Visa has raised a record 18 billion dollars in its stock market flotation. The previous record was the amount raised when telecom giant AT&T went public eight years ago, raising 10 billion dollars.
Not only that but Visa still has over 40 million shares in reserve, which could bring the final figure for the sale to nearly 20 billion dollars.
This is Visa’s first time being registered on the New York Stock Exchange. The successful launch comes despite the international credit crisis… Visa is entering a jittery market, considering the shaky consumer confidence. How many people do you know right now going out and making big purchases? Many companies cancelled stock market floatations planned for the past few months because of the poor financial climate but Visa decided to go ahead anyway.
Visa Stock ups
-Visa is something that everyone (well most everyone) uses and there is a good chance that Visa Stock will go up considerably in the next year since this is their initial public offering.
-Visa Stock should be fairly easy to get ahold of since they are releasing such a massive amount, in a weak market.
-MasterCard is up 300%-plus since its 2006 IPO.
Visa Stock downs
-Dont expect Visa stock to repeat Mastercard Stock. There were a lot of problems with Mastercard that were turned around fairly quickly.
-The economy is weak so people are spending less
-Visa stock volume is huge
Overall, I think I am going to pick up a few shares simply for the reason that this is a once in a lifetime kind of thing – an opportunity to buy the initial public offering of something that I use every day.