VISA, THE world's biggest credit card network, said it could raise nearly $19 billion (€12.8 billion) from a long-awaited public offering (IPO) - a figure that would make it the largest initial public offering in the United States.

In a filing with the Securities and Exchange Commission yesterday, Visa said it would sell up to 447.2 million shares at $37-$42.

The IPO would offer 406 million shares for public sale. Visa's underwriters have the option to buy a further 40.6 million of its shares.

The offering, which could total $18.8 billion, would easily beat the last highest offering: AT&T Wireless for $10.6 billion in 2000.

The next largest offering was Kraft Foods, at $8.7 billion in 2001. At the lower share price, the Visa offering would raise $16.5 billion, including $1.5 billion in shares potentially available to underwriters.

MasterCard's IPO two years ago raised Mastercard $2.39 billion. MasterCard's shares have risen more than four and a half times since listing. Visa is a membership association owned by financial institutions.

Electronic payment networks such as Visa have seen sharp growth in recent years as consumers shift from paper-based payments, such as cash and cheques, to card-based and other electronic payments.

Global transactions on cards increased at an annual rate of 14 per cent between 2000-2006, the offering prospectus says. Global card purchase transactions are forecast to increase 11 per cent between 2006 and 2012.

"Like MasterCard, Visa has room for growth, even in today's turbulent economy," said Red Gillen, analyst at Celent.

"Consumers on a diversified, international basis are increasingly swapping . . . paper cash and checks [for] plastic cards."

Visa handled $3,230 billion in volume in 2006, against $1,922 billion at Mastercard and $562 billion at American Express, the company said.

Visa does not extend credit but it charges for transactions.

-(Financial Times service)