Visa’s much anticipated IPO could shatter the current Top 10 U.S. IPOs on record and go down in history as the largest U.S. IPO if Visa’s share price hits its target price of $37 to $42 per share. Visa is facing a sluggish market that is hampered by the U.S. credit crunch. Visa is hoping to usurp its rival MasterCard who’s IPO raised $2.4 billion. Visa had originally indicated it wanted to raise $10 billion, however, in its amended registration statement filed with the SEC, Visa plans to raise up to $19 billion in its long awaited IPO. Visa will float a little more than 50% of the company to the public. Despite current market conditions, debit and credit card volume is projected to grow by 11% CAGR annually from 2006-2012 and Visa owns 66% market share of debit and credit card transaction volume. Visa is pushing for a “cashless” society, which has influenced debit and credit card growth as consumers’ payment preferences shift from cash and checks to debit and credit cards.

Tags: business, consumers