Visa raises $18 bn in record IPO

Visa Inc burned its name into the record books for US initial public offerings (IPO) on Tuesday, raising $17.9 billion as investors seized on its growth potential and lack of direct exposure to the global credit crisis. San Francisco-based Visa, the world’s largest credit card network, sold 406 million class A common stock for $44 per share, above the forecast range of $37 to $42.

Visa will begin trading on the New York Stock Exchange on Wednesday. Anticipation for the IPO was high on hopes it will emulate the success of smaller rival MasterCard Inc, whose shares have more than quadrupled since its 2006 IPO. The stock could jump nearly10 per cent in first-day trading on Wednesday, said Francis Gaskins, president of research firm IPOdesktop.com.