Despite adverse financial climate, Visa IPO raises $17.9B (AP) (19-03-2008)

SAN FRANCISCO (AP) -- Investors forgot all about the credit crisis and supported the Visa IPO by rushing to buy 406 million Visa Inc. shares at $44 apiece late Tuesday to raise nearly $18 billion and complete the most lucrative initial public offering in U.S. history.

The price topped the range of $37 to $42 per share that Visa set three weeks ago, reflecting high demand to own a piece of a company that's promising earnings growth of 20 percent despite a credit crunch that's choking the U.S. economy.

Investment bankers could still exercise an option to buy another 40.6 million Visa shares during the next 30 days. If that happens, Visa's IPO will end up raising $19.7 billion before expenses.

Visa begins trading on the New York Stock Exchange under the "V" ticker symbol on Wednesday. The San Francisco-based company will make its debut with a market value of about $36 billion.

Based on the strong demand among money managers who wanted a piece of the IPO, Einhorn anticipates Visa shares will quickly soar above $50.

Visa has been touting its stock as a safe haven -- a message that apparently resonated with investors

Source AP