EcommerceBytes-NewsFlash, Number 259 - February 15, 2002 2 of 2
PayPal Prices IPO, Stock Set to Trade on NASDAQ Today
By Ina Steiner
PayPal Inc. priced its initial public offering of 5.4 million shares of its common stock at $13.00 per share yesterday. The company has granted the underwriters an option to purchase up to an additional 810,000 shares to cover any over-allotments, if any. Salomon Smith Barney served as bookrunning manager for the offering; Bear, Stearns & Co. Inc., William Blair & Company, SunTrust Robinson Humphrey and Friedman Billings Ramsey served as co-managers. The offering of these securities is made only by means of a prospectus, copies of which may be obtained from Salomon Smith Barney, Brooklyn Army Terminal, 140 58th Street, 5th Floor, Brooklyn, NY 11220 (telephone: 718-765-6732).
PayPal is an online payment service that became popular with online auction buyers who sent payments to sellers electronically; the PayPal service is widely used by Internet sites to collect credit card payments as well. The PayPal product launched in October 1999, and to date, the company has never achieved a profitable quarter.
PayPal was originally set to price its IPO of stock last week but was delayed when CertCo Inc. filed a lawsuit against PayPal for patent infringement. Yesterday AuctionBytes reported another lawsuit against PayPal, this one served to the company on February 7, 2002, by Lew Payne Publishing, Inc. (LPPI). To add to PayPal woes, some states have begun inquiries into PayPal's status to determine if PayPal is subject to state banking regulations.
Shares of PayPal stock are expected to begin trading on the NASDAQ stock exchange today under the symbol PYPL.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to firstname.lastname@example.org.
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