Gregg Jaclin | IPO Success Stories: Visa

Since its initial public offering, Visa has given an impressive return to investors. The payments technology company enables electronic funds transfers across the globe. It also provides fraud protection and cross-border transaction services. Since its initial public offering on the New York Stock Exchange, Visa’s stock price has increased significantly. Let’s look at how much money a $100 investment would have been worth today if it had been placed in the company’s IPO.

Visa’s initial public offering was one of the biggest in the history of the US. It happened during the peak of the Great Recession. The company’s stock price initially opened at $44. Visa’s shares closed the first day at $56.50.

A $100 investment in Visa’s IPO resulted in two shares with an $88 value. Before we can determine the current value of these shares, it’s important first to calculate the company’s 4-for-1 stock split that occurred on March 18, 2015. This method lowers the share price and gives Visa’s shareholders four shares for every one they own.