SAN FRANCISCO — Catapulted by the biggest IPO in U.S. history, Visa shares soared 28 percent in their stock-market debut Wednesday as investors bet an accelerating shift to electronic payments will enrich the world’s largest processor of credit and debit cards.
After being priced above expectations at $44 per share in an initial public offering that raised nearly $18 billion, Visa shares finished at $56.50 on the New York Stock Exchange on Wednesday. The run-up gives the San Francisco-based company a market value of about $45 billion.
Investors say Visa is in a lucrative position as more people rely on its electronic network to make payments instead of using cash and checks.
Visa generated $5.2 billion in revenue last year as it handled more than more than 44 billion transactions totaling more than $3.2 trillion. The volume puts Visa far ahead of rival MasterCard, whose own shares have more than quintupled from their May 2006 IPO price of $39.
Visa, which doesn’t carry consumer debt on its books, is well-insulated from the credit problems that have scarred many of the lenders that issue cards bearing its brand.
The Associated Press
