Visa’s IPO Card

As has been widely expected, Visa filed for an IPO.  In light of MasterCard’s (NYSE: MA) stunning performance in the public markets, it seems only natural for Visa to follow suit.

And it could rank as one of the largest IPOs in history – perhaps exceeding $10 billion.

I’ve had a chance to scan through the prospectus.  No doubt, there are pages of details on outstanding lawsuits. 

Then again, the company is a big-fat target.  For the first nine moths of 2007, revenues came to $3.7 billion and net income was $771 million. 

By far, Visa operates the largest retail electronic payments network in the world.  And with the IPO dollars, the company is likely to expand things, such as for more sophisticated business transactions.  There are also the massive opportunities in places like China.

Other takeaways on Visa:
• Leader in branded credit/debit cards in circulation
• Cards accepted in 170 countries
• VisaNet processed more than 74 billion authorization, clearing and settlement requests in the 12 months ended March 31, 2007
• More than two-thirds of Visa’s financial institution customers have been customers for longer than 10 years.

Visit DealProfiles.com to get more details on the filing.

China Nepstar: IPO investors get their drug fix

Going into this week, China Nepstar (NYSE: NPD) had a price range on its public offering at $11.50-$13.50.  Well, as is usual for Chinese IPOs, it was too low.  Yesterday China Nepstar priced its shares at $16 and so far in today’s trading, the stock is up 17%.

China Nepstar is the largest retail drugstore chain in China, with a network of 1,791 stores in 62 cities.  Yet, China Nepstar’s market share is only 0.5%.  But with its IPO, the company is likely to scoop up a variety of competitors.

China Nepstar has another important differentiation:  proprietary brands.  In other words, such things are a nice margin boost.

Over the past three years, the compound annual growth rate of revenues has been about 43.4%.  Last year, there was about $227.6 million in revenues.  And, as for the first half of this year, revenues came to $124.3 million.

The underwriters on the deal include:  Goldman Sachs (NYSE: GS) and Merrill Lynch (NYSE: MER). 

You can also find more information on the IPO at DealProfiles.com.