Mastercard Sets IPO Range

It wants to raise $2.84 billion selling shares at between $40 and $43 apiece.
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Credit card giant


is looking to raise as much as $2.84 billion in its initial public offering.

The Purchase, N.Y.-based company plans to sell 61.5 million shares at a price ranging between $40 and $43 a share. The company intends to use all but $650 million of the IPO proceeds to redeem shares from its existing stockholders.

About 1,400 financial institutions are current MasterCard shareholders. The existing shareholders' equity stake in the company will be reduced to 41% after the offering.

The IPO was delayed earlier when MasterCard CEO Robert Selander announced he had prostate cancer.

The offering is being led by

Goldman Sachs

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JPMorgan Chase

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In a regulatory filing announcing the pricing terms for the IPO, MasterCard disclosed that it earned $126.7 million in the first quarter, up from $93.3 million. If the company was already publicly traded, it would have earned 94 cents a share in the first quarter.

Revenue rose 12% to $738 million.