Visa hopes to raise $10B in IPO

Visa plans to deposit a portion of the companys proceeds from the IPO into an escrow account to pay settlements or judgments related to litigation settlements. Visa will pay American Express Co. up to $2.07 billion to settle a lawsuit alleging the company illegally stifled competition. Under the plan, Visa said its member banks will absorb the costs of the settlement.Visa posted net income of $771 million on operating revenue of $3.73 billion for the nine months ended June 30, according to the Securities and Exchange Commission filing. Visa did not disclose the number or expected price range of the shares it plans to offer. The company noted that the total offering price was estimated solely to calculate its registration fee and may change. Visa also did not indicate whether any stockholders will sell shares in the IPO. The company listed JPMorgan Chase as its largest stockholder, with 23.3 percent of its Class B shares. According to the filing, Bank of America Corp. owns 11.5 percent of Visas Class B stock and National City Corp. owns 8 percent of Class B shares.Visa made the disclosure in an S-1 filing with the SEC. Previously, Visa released the restructuring steps it would take to prepare for its IPO in S-4 filings.