MasterCard Inc., the bank-controlled card association that is going public, said Wednesday that it expects to get $40 to $43 per share in its initial public offering of stock, according to a filing with the Securities and Exchange Commission.
Purchase, N.Y.-based MasterCard said in the filing that it plans to offer 61.5 million shares to the public and underwriters will have an option to purchase an additional 4.6 million shares. That values the entire package at more than $2.8 billion. No date for the sale was set.
The company initially filed its IPO last September. In February, the company delayed the offering until the second quarter to allow its chief executive officer, Bob Selander, to recover from prostate cancer surgery.
MasterCard is one of the biggest card servicing companies in the nation and provides clearing and support services for credit, debit and other payment cards. Its largest competitor, Visa International, based in Foster City, Calif., has announced that it is restructuring its board but has no plans to offer stock to the public.
MasterCard said it plans “to use all but $650 million of our net proceeds from this offering to redeem shares of Class B common stock from our existing stockholders.” The balance will be used to increase capital for general business purposes.
The New York-based investment bank Goldman Sachs & Co. is the lead underwriter for the offering. Others involved include Citigroup Inc. and JPMorgan Chase & Co. of New York, the London-based HSBC Holdings and Deutsche Bank Securities.
On Tuesday, MasterCard reported that its first-quarter net income rose to $126.7 million, or $1.27 a share, from $93.3 million, or 93 cents a share, a year earlier.
MasterCard said revenue totaled $738.45 million for the January-March period, up 12.2 percent from $658.24 million a year ago.
The company said the revenue increase reflected higher usage on cards carrying its logo, a larger number of transactions processed and pricing changes that went into effect on April 1, 2005.
MasterCard also said it entered into a committed, three-year, unsecured $2.5 billion revolving credit facility with certain financial institutions.