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PayPal IPO raises $70.2M
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February 14, 2002: 6:35 p.m. ET
New issue from online payment system will trade Friday despite lawsuit.
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NEW YORK (CNN/Money) - PayPal Inc. raised $70.2 million Thursday ahead of its initial public offering, despite a lawsuit that is trying to shut the online payment system down.
Palo Alto, Calif.-based PayPal sold 5.4 million shares at $13 each, within its $12-to-$14 price range, via lead underwriter Salomon Smith Barney.
Last week, PayPal delayed its IPO because of a lawsuit from CertCo Inc., alleging patent infringement. PayPal expects CertCo to file a preliminary injunction against it to shut PayPal down, the online payment company said in its most recent filing with the Securities and Exchange Commission.
But the IPO will begin trading Friday under the Nasdaq symbol PYPL, underwriters on the deal said.
PayPal is very popular with users of online auction sites such as eBay. Businesses or consumers with e-mail use PayPal to send and receive payments. About 68 percent of dollar volume made through the PayPal system comes from auction sites.
New York-based CertCo provides security and risk management software for companies doing business online. 
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