On the heels of an underwhelming investor reaction to Vonage (VG) - Get Report shares on their first day of public trading, MasterCard International priced its initial public offering below its expected range.
The credit-card-issuing giant said late Wednesday that 61.5 million of its Class A shares priced at $39 each, raising $2.4 billion. The shares will begin trading Thursday on the
New York Stock Exchange
under the symbol "MA."
MasterCard plans to keep $650 million of the proceeds of the sale, with the rest used to redeem stock held by current shareholders. The company has granted the IPO's underwriters an option to purchase up to 4.6 million additional shares within 30 days to cover over-allotments.
Securities and Exchange Commission
filing for its IPO, MasterCard said it had planned to offer the shares in a price range of $40 to $43 each. The IPO represents 46% of MasterCard's equity and 82% of its voting power, according to the
Wall Street Journal
MasterCard can only hope the shares fair better on their maiden voyage than did those of Vonage; that stock fell more than 12% to close at $14.85 on Wednesday after pricing the prior evening at $17.