Visa raises $17.9 billion in record IPO

By Lilla Zuill

NEW YORK (Reuters) - Visa Inc (V.N: Quote, Profile, Research, Stock Buzz) burned its name into the record books for U.S. initial public offerings on Tuesday, raising $17.9 billion as investors seized on its growth potential and lack of direct exposure to the global credit crisis.

San Francisco-based Visa, the world's largest credit card network, sold 406 million class A common stock for $44 per share, above the forecast range of $37 to $42.

Visa will begin trading on the New York Stock Exchange on Wednesday.

Anticipation for the IPO was high on hopes it will emulate the success of smaller rival MasterCard Inc (MA.N: Quote, Profile, Research, Stock Buzz), whose shares have more than quadrupled since its 2006 IPO.

The stock could jump as much as 10 percent in first-day trading on Wednesday, said Francis Gaskins, president of research firm IPOdesktop.com.

Visa's pricing and optimism about possible first-day gains were likely helped by Tuesday's rally, as U.S. stocks rang in their biggest one-day gains in more than five years.

Only days ago, U.S. stocks plunged on the near-collapse of Bear Stearns Cos Inc BSC.N.

MasterCard has done well despite the market slump, Gaskins pointed out. The stock rose 4.3 percent, or $8.73, to $210.25 on Tuesday, and gained almost 2 percent in aftermarket trading.