Apparently visa has decided that it will come out with the largest IPO ever in US stock market. As i see it, this is a risky maneuver for buyers. Currently financial industry is trversing an inflection point, asset repricing is in progress and most financial institutions are increasingly looking at monetizing as many different types of assets as possible.
In situations like this, it is extremely important to run through the financial statements of the IPO company with a fine tooth comb and examine the valuation of the organization skeptically. The more conservative the financials and valuation the better it will be for an investor.
Especially important would be elements of the business model that depend on externalities. Credit card industry is a high visibility industry and the chances of external environment affect, like legislative, regulatory impact on the industry should be factored in while arriving at the valuation of Visa.
This is an interesting IPO process to follow.
A place with a view 