February 15, 2002, 12:00 AM

A blast from the past: PayPal’s IPO spikes 62% in first trading day

PayPal offered 5.4 million shares for sale on Thursday at $13 a share. By mid afternoon today, they had gone up 62% in price to $21.

 

It was a phenomenon not seen almost since the good old days of three or four years ago: An Internet company launches an IPO and its stock shoots up the next day. PayPal Inc., an online payment service available to any consumer with an e-mail address, offered 5.4 million shares for sale on Thursday at $13 a share. By mid afternoon today, they had gone up 62% in price to $21.

But also just like in the old days, the newly public company has yet to make any money. In fact, it had accumulated losses of $264.7 million from its start in March 1999 through Sept. 30, at the time PayPal filed its IPO prospectus.

PayPal`s online payment system had 10.6 million business and personal accounts as of Sept. 30. Payments made through PayPal amounted to $2.3 billion for the nine months ended Sept. 30. Revenues reached $30.2 million for the quarter ended Sept. 30 from $2.3 million in the year-earlier quarter.

On top of the good news about its successful IPO, PayPal also announced today it expects CertCo Inc. to file a motion seeking a preliminary injunction against PayPal, as early as today, in a patent infringement case that CertCo has brought against PayPal.

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