Mar 09
The largest initial public offering (IPO) ever in the U.S. is set to take place within the next month. Visa is set to sell almost a half-billion shares, and is expected to begin trading around the $40 a share mark. Although I would need to do an awful lot of research before buying shares myself, there are some reasons I think this may be worth looking into.
- It’s a large IPO - Typically large IPOs don’t rocket higher the moment they start trading. So investors won’t need an exclusive brokerage account to get a deal on shares ahead of time, as with most IPOs.
- Best of breed - It’s a chance to buy stock in a company that is one of the world’s most recognized brands. It has more cards in circulation that any other credit card company, and processes far more transactions.
- Good pricing - Investors should get a decent price because Visa’s owners are launching this massive initial public offering in a weak market.
- Great business model - It makes money by processing transactions rather than lending money. The use of credit cards is becoming more and more common, and looks to be a growing trend in the future. More transactions = more revenue.