Commbank nets $355 million from Visa IPO
The Commonwealth Bank has announced an expected pre-tax gain of $355 million following Visa’s record initial public offering (IPO) on the New York Stock Exchange.
Visa raised nearly $18 billion, making it the largest IPO in US history, CNN reported.
Visa had priced its shares at $37 to $42 but buyers went to $44 a share, or $17.9 billion.
The Commonwealth Bank expects its pre-tax gain to be approximately $310 million while its New Zealand subsidiary, ASB, is expected to gain about $45 million, it announced in a press release today.
This gain represents the proceeds from the sale of 51 per cent of the group’s Visa shares in the IPO as well as the fair value of the remaining shares held by the group under trade restrictions, the release said.
The gain is “in the vicinity of what we were expecting”, Commonwealth Bank general manager of media Bryan Fitzgerald told Money Management.
The bank has said that it will use the proceeds of the sale to fund its strategic investment program.
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