The Visa IPO--an Investment in the Next Big Thing (to Crash)
Visa's IPO Could Ease Some Banks' Subprime Pain Credit Card Firm Seeks to Raise $18.8 Billion
By Tomoeh Murakami Tse Washington Post Staff Writer Tuesday, February 26, 2008; D01
Visa said Monday that it is looking to raise as much as $18.8 billion in what would be the largest initial public offering ever for a U.S. company.
In a filing with the Securities and Exchange Commission, Visa said it plans to offer 406 million shares at $37 to $42 each, with an option for the deal's underwriters to buy an additional 40.6 million shares.
If it goes well, the Visa IPO would give a boost to its member banks, which include Bank of America, J.P. Morgan Chase, HSBC, Capital One and Citigroup. Some banks have been hit with billions of losses on subprime mortgage-related securities and have actively been looking to raise capital.
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The banks are too scared to loan to each other, Bank of America and Citigroup are on th…