NEW YORK (Bloomberg) - Visa Inc., the world's biggest credit-card network, soared as much as 57 percent in its first day after raising $17.9 billion in a record US initial public offering (IPO).

Visa advanced $15.87 to $59.87 at 11.25am in New York Stock Exchange composite trading. Underwriters sold 406 million Class A shares of Visa for $44 each, according to a company statement late on Tuesday. That's $2 more than the highest price predicted by San Francisco-based Visa in its prospectus.

Visa and MasterCard Inc., the second-biggest card network, are benefiting as consumers turn away from cash and checks in favor of credit and debit cards. MasterCard has returned about 450 percent since its IPO in 2006. Unlike American Express Co. and Discover Financial Services, which make credit-card loans to consumers, Visa and MasterCard just process transactions.

"This one stock reminds me of the dot-com days; this is a very warm welcome," said Michael Kon, senior analyst at Chicago-based Morningstar Inc. "Investors like the fact that there is no credit risk."

The IPO eclipses AT&T Wireless Group's $10.6 billion offering in 2000, and will rank as the world's second-biggest IPO if underwriters use their option to sell 40.6 million more shares. The largest was the $22 billion debut by Industrial & Commercial Bank of China Ltd. in 2006.

Visa's Class A shares trade under the ticker "V".

Cards will be used for 55 percent of all US transactions by 2011, rising from 40 percent in 2005, according to the Nilson Report, an industry newsletter based in Carpinteria, California.

MasterCard has doubled in the past year, compared with a 21 percent drop at American Express and Discover's 39 percent decline since its spin-off last year from Morgan Stanley.

Led by CEO Joseph Saunders, 62, Visa's initial public offering completes the transformation of the firm and MasterCard from not-for-profit associations owned by banks to independent companies that serve banks as customers.

The six largest bank owners of Visa, which hold Class B shares, may have collected $3.2 billion by selling some of their stock, according to data compiled by Bloomberg. JPMorgan Chase & Co., Visa's largest bank holder, made approximately $1.26 billion. The bank's remaining Class B shares are worth about $2.84 billion. It has set aside $700 million to cover costs related to Visa litigation.

Bank of America Corp. made about $625.7 million in the sale and holds an equity stake worth $1.41 billion. Bank of America is Visa's second-largest bank owner.

The world's biggest financial firms have absorbed $195 billion in writedowns and credit losses since the beginning of 2007, including $37.1 billion by Visa's top holders, according to data compiled by Bloomberg.

Visa agreed on November 7 to settle a 2004 anti-trust suit brought by New York-based American Express for $2.25 billion, removing an obstacle to the share sale. Some proceeds from the offering will be used to settle lawsuits including the one with American Express, Visa said in its filing. The rest will be used to buy stock from member companies and to run the business.