Re:Wait a sec... (Score 2)

IPOs are typically used to obtain working capital for business development. But the Palm series is already popular and profitable. It is helpful to remember that although an econ prof might once have taught you that companies go public to access capital to grow, there are in fact many reasons why a company will go public (even this is not all-inclusive):

The obvious - they want the cash for expansion.

Publicity - in this day and age, having a big IPO will get you a lot of free publicity.

Make management of the company a lot of $. In this case, doubtless the staff of Palm is clamoring for the IPO considering their parent's (3Com) stock has been going nowhere for a while now.

Help attract new management and staff through the ability to give them options for a stock that is already public.

Like I said, there are many more reasons, but these are the ones that seem applicable in this case.