In America’s first dot.com flotation in almost a year, PayPal,
the company behind a popular but loss-making payment system, has
successfully raised $70.2 million. The company sold a 9% stake, or
5.4 million shares, at $13 per share.
The company’s system enables its 10 million business and
consumer customers with e-mail to send and receive on-line payments
securely. However, earlier this month, its system became the target
of a patent infringement lawsuit which delayed the IPO.
PayPal’s quarterly revenues exceed $30 million. However, since
launch in March 1999, the company has accumulated losses of more
than $264 million. The company expects to become profitable later
this year.
The last internet company to float in the US was Loudcloud, in
March last year.
