Going public isn’t just a time for companies to raise money

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Take PayPal, for instance. Its plan to launch an initial stock offering provided impetus for people who had a bone to pick with the online payment firm to publicly air their grievances.

Last week’s filing of a patent infringement lawsuit from a rival firm forced PayPal to delay its much-anticipated IPO. This week, PayPal disclosed that Louisiana regulators are balking at its request for a license to do business.

It’s unclear how disruptive the lawsuit and the move by Louisiana regulators will be to PayPal’s plans for a lucrative IPO.

According to the Feb. 7 filing, Louisiana regulatory authorities will not let PayPal resume operations in the state until it receives a money transmission license there. In a previous filing, PayPal said that Louisiana regulators told the company on Feb. 6 that it would not grant it a money transmitter license until they have determined whether the service constitutes an unauthorized banking business under state law. Currently, PayPal has transmitter licenses only in Oregon and West Virginia, but filed applications in other states.

The letter from Louisiana authorities is the latest in a string of problematic developments for PayPal, which had planned to launch an initial stock offering last week, but delayed the IPO following a patent infringement lawsuit from CertCo, an online security firm.

PayPal has been receiving a great deal of attention on Wall Street because it is attempting to go public at a time when Internet companies are virtually absent from the lineup of firms launching IPOs.

The Palo Alto, California, company — which provides a system for sending money by e-mail — is planning to offer 5.4 million shares for between $12 and $14 a piece on Nasdaq.

Although it has racked up substantial losses in its three-year operating history, the company attracted a rapidly growing customer base, largely due to its popularity as a payment method for patrons of eBay auctions. The company says it plans to use the money to buy equipment, improve processing of payments and expand overseas.

PayPal’s chief underwriter, Salomon Smith Barney, said the company’s IPO is scheduled to price Thursday night and begin trading on Friday.

In a Monday report, David Menlow, president of IPO Financial Network, said he still expects PayPal to be the best performing new offering of the week, despite the substantial volume of negative e-mail he has received about the company’s business practices and internal problems.

PayPal did not comment on the latest developments in Louisiana outside of its securities filings.

Take PayPal, for instance. Its plan to launch an initial stock offering provided impetus for people who had a bone to pick with the online payment firm to publicly air their grievances. Last week’s filing of a patent infringement lawsuit from a rival firm forced PayPal to delay its much-anticipated IPO. This week, PayPal disclosed…

Take PayPal, for instance. Its plan to launch an initial stock offering provided impetus for people who had a bone to pick with the online payment firm to publicly air their grievances. Last week’s filing of a patent infringement lawsuit from a rival firm forced PayPal to delay its much-anticipated IPO. This week, PayPal disclosed…