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IPO

VISA’s IPO

Visa confirmed it would proceed with a public offering this spring. The company hopes to raise $18.8 billion, making it America’s biggest IPO. Visa takes fees from credit-card transactions;

Isn’t it odd that the in a time when the entire world is facing Credit Crisis, loan defaults are at an all time high, VISA (which makes all its money from Credit Cards) is confident that it can launch the biggest IPO in American history. Maybe it proves that the present crisis cannot scare off the companies with sound fundamentals.

PS: the default risk is borne entirely by the company issuing credit cards and not VISA. Hence the company could take this audacious step.

 

street, Bengaluru South, Karnataka, India

3 replies on “VISA’s IPO”

People are using credit cards more than ever, thanks to the slowing down of the economy. Because they’re losing jobs. Visa gets more money. Plus, they want equity, which is a sign that they are growing.

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