To: pilapir who wrote (9167 ) 2/15/2002 1:08:16 PM From: Sir Auric Goldfinger Read Replies (1) | Respond to of 19428 Fish just wanna be fed: "PayPal Surges After 1st Internet IPO in Almost a Year (Update2) (Updates with IPO background in fifth paragraph.) New York, Feb. 15 (Bloomberg) -- PayPal Inc. shares surged as much as 54 percent after the provider of online payment services for EBay Inc. customers became the first Internet company to go public in almost a year. PayPal rose $6.15 to $19.15, after earlier rising as high as $19.99. The company sold 5.4 million shares at $13 yesterday to raise $70.2 million. PayPal follows GameStop Corp., the video-game store unit of Barnes & Noble Inc., which is up 9.6 percent since its $325 million IPO on Tuesday. ``We've had two in a row now that stand out,'' said Ryan Crane, who helps manage the $1.1 billion AIM Global Aggressive Growth Fund. `To be able to come public in a market like this, companies have to have a pretty good story. The companies we're seeing are pretty high quality.'' PayPal's IPO is the seventh this year, which is shaping up as the slowest start in about two decades. At the same time last year, 10 companies had completed sales. Internet companies have found it especially difficult attract buyers for their shares. Almost 60 Internet companies withdrew their IPO plans last year as demand for young, unprofitable companies slumped, according to Dealogic LLC. Lawsuit Delay PayPal's e-mail payment system is used by customers of online auction sites. The three-year-old company's growing customer base, which stands at 11 million, and its forecasts of turning a profit this year, lured buyers to the sale. Salomon Smith Barney Inc. managed the sale. The shares trade on the Nasdaq Stock Market under the symbol PYPL. The sale was delayed for more than a week after the company was sued by rival CertCo Inc., which claims PayPal is using its patent without a license. Investors downplayed concerns that the CertCo suit may force PayPal to stop business, as well as a battle the company is having with some state regulators who say the company is conducting unlicensed banking business. PayPal offers its account system in 37 countries and said the value of payments on its system totaled $2.3 billion in the nine months ended Sept. 30. Some $2 billion of that comes from its business accounts, largely comprising online auctions. Users pay a fee on each transaction. The fees brought in revenue of $61.4 million in the first three months of last year and cost $31.9 million. --Emma Moody in the New York newsroom (212) 893-3504 or emoody@bloomberg.net. Editor: Pittman.