Company/Industry expectations

(these are just assumptions and company can perform differently)

• With rising popularity of plastic money due to different reasons like safety, security, easy to carry, more acceptability at merchant establishments, cross-border utilization company's market is likely to show growth rate of 11% ( 06-'12 Cumulative annual growth rate) with Asia pacific and Africa will contribute most in growth.

• With rising popularity of computer and internet the online shopping and e-commerce activities will rise and will help company's like Visa.

• Due to its leading position and establish relationships company should be able to make most out of growing opportunities.

Negatives

• Complex corporate structure.
  Company's corporate and equity structure is complex due to recent reorganization with various class of shares many of which are due for redemption within one year of this offering by utilizing money raised from this offering.

• No direct link with its end users
  Company don't issue cards, and is totally dependent on its customers to issues Visa branded cards to its end users.

• Expected slowdown in growth rate.
  Although company has shown significant financial growth rate during three months ended Dec 2007 but in future it is not expected to show similar growth due to economy slowdown, fee raised during second half of FY 2007 which are main reason for recent growth is fully factored in current revenues, and expected  increase in volume and support incentives. Although still company's revenues is expected to show growth inline with industry growth which itself is expected to rise @11% in near future.

• Future share redemptions (obligations and plans) & Visa Europe Put-Call Option Agreement.
  With in one year of completion of this offering company is intended to redeem various class of it's shares held by Visa Europe which will lead to a cash outflow of nearly $2.4 billion. Further Visa Europe holds a put option under which the Company ("Visa Inc.") is required to purchase from its members all of the share capital of Visa Europe. At the date of reorganization (October 01, 2007), the fair value of the put option was approximately $346 million. (Although all redemption expenditure is expected to be funded by current offering.)

• Additional litigation provision.
  Although in FY 2007 company has made a Litigation provision of $2,653 million (includes provision for some future payables) in its consolidated account statements. Still for the quarter ended March 31, 2008, Company currently expect to record an additional litigation provision of approximately $285 million related to the covered litigation, which will be recorded as a charge against income. (Although adequate measures has been taken by company to protect new shareholders from any past litigation provisions.)

• Utilization of proceeds
  Most of the proceeds of this offering will be utilize by the company to redeem existing shares so the most amount raised from this offering will not go to company's business.

Positives

• Industry leader.
  Visa operates the world?s largest retail electronic payments network with nearly 1.5 billion Visa branded cards issued so far.

• Vast reach
  One of the company's biggest strength is it's vast reach in nearly 170 countries which to some extent isolate it from country specific slowdown although still company collect major part of its revenue from US and its performance will be effected by any US slowdown.

• Biggest and trusted brand.
  Visa is one of the biggest, trusted and most know brand in global payment industry not only with financial institutions but also with its end users. This trust and brand recognition is most valuable asset in any payment industry.

• Existing relationships.
  Company generate its revenues from all over world and hold strong relationships with leading financial institutions world over.

• Ample growth opportunity
  Electronic payment industry provides ample growth opportunity for Visa, as it still is a uprising industry in fast growing Asia and Africa regions which hold significant part of world population. Data shows that Debit Card market is still in a early stage of evolution in regions outside US and Europe. With rising number of card holders and rising number of merchant establishment accepting cards, market can show Hugh growth in future.

• Diversified product offering
  Company offer comprehensive suite of electronic payment products and services. Its  product platforms encompass credit, debit, cash access and prepaid products for consumers, businesses and governments. These product platforms enable its customers to develop and customize their own payment programs to meet the needs of their cardholders and merchants.

• Small transaction size
  Visa's average transaction size (below $ 80 per transaction) is much below the size of its competitors (mostly above $100), which leaves lot of room for improvement in terms of volumes.

Possible reason behind offering (despite the current negative sentiments in stock markets).

Despite the current negative sentiments in stock markets company is coming out with a IPO because it's most promoters are financial institutions and most of them due to recent credit market meltdown are in very urgent need of cash for their core business and by selling some part of their holing in company they are likely to come out from their present trouble.

What make Visa IPO special

• Its the largest IPO offered in US.

• Despite being industry leader this IPO comes at significant discount to its comparable peer companies like Master card etc due to the urgent need and financial hardship of some of the company's promoters.

This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision