Visa prepares for near-$19B IPO: Great Timing with Credit Crunch
In what has to be a case of the worst timing award, Visa is planning to launch an $18.76 billion IPO. When credit gets tight, go IPO:
NEW YORK (AP) — Visa Inc. said Monday its initial public offering could raise up to $19 billion – making it the largest in U.S. history – even though the credit card processor is entering the market at a difficult time.
The San Francisco-based credit card processor expects to see high demand for its stock, despite the housing-led credit squeeze that is threatening consumers’ spending and their ability to keep up with debt payments.
But Visa, like its public rival MasterCard Inc., is a card processor, not a lender, and has a strong presence in other countries where many people are just starting to use plastic instead of cash. And Visa is the largest U.S. card company by market share – its transactions, in number and dollar amount, in 2006 outpaced those at MasterCard and American Express Co.
Visa said in a Securities and Exchange Commission filing it will offer 406 million shares at $37 to $42 per share. There will be an option for underwriters to buy an extra 40.6 million shares to cover any excess demand.
Mastercard had a very successful IPO but currently is trending lower. The appetite for credit is diminishing and it will be interesting times for the IPO. If anything, Visa owns a large percentage of the US marketshare and this stock alone, should be an excellent litmus test for global consumer demand.
If you enjoyed this post click here to subscribe to a complete feed and stay up to date with today’s challenging market!What are the best jobs of 2008?
As the economy evolves and takes a different course, what are the best jobs for 2008? Almost with a process of elimination, we can assume that the jobs that are contracting the most have much to do with housing and finance. In the midst of all of this there are still many bright spots to look at. MSNBC has an interesting article discussing the current state of jobs for 2008:
- Computer software engineers (the #4 fastest growing job) had the highest median income in 2006, coming in at more than $79,000.
- Veterinarians (the #9 fastest growing job) are close behind with a median income of nearly $72,000.
- Financial analysts and advisors place next in terms of salary (#12 and #6) at $66,000 median income for each.
- Dental hygienists (#18) are also well compensated at a median of nearly $63,000.
Also, there will be new jobs given the “green revolution” and money flowing into environment friendly jobs. Given the incredible rise in energy cost expect jobs in renewable energy to also be hitting a stride in the upcoming years.
