PayPal Finally Finds A Friend In IPO MarketPayPal Finally Finds A Friend In IPO Market

That sigh of relief you heard last week came from the Palo Alto, Calif., offices of PayPal, the online payments provider that pushed through its initial public offering after a series of setbacks. The IPO, delayed the previous week by a patent-infringement lawsuit, and then rattled by warnings from state banking regulators, raised $70.2 million. Some 5.4 million shares were priced at $13 each, in the middle of the projected $12 to $14 range, and were selling for $20.09 at the close of trading Feb. 15. Analysts watched the offering closely, since the IPO market for IT companies has shown signs of life in recent weeks.

PayPal was warmly received even though the company's Louisiana operations were shut down by authorities who said it "constituted an unauthorized banking business." More states could follow suit. PayPal argues that banking regulations don't apply. It's seeking money-services business licenses in 15 states and has licenses in Oregon and West Virginia. PayPal is also fighting a patent-infringement suit filed by rival Certco.