Vonage IPO Shares Priced at $17

7:40 am on May 24, 2006 | Category: Business, VoIP

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Broadband phone carrier, Vonage, kicked off its much-anticipated stock IPO yesterday, offering shares at a cost of $17 each.

The move should generate a total of about $531 million for the company, most of which will be used to expand the business, cover operating losses, and pay for high-profile marketing campaigns.

Vonage has set aside about 13.5% of the shares being offered for its own customers, in an effort to make users buy a stake in the business. This offer should attract quite a few willing investors, due to the company’s large and loyal following.

The IPO’s overall success, however, is still up in the air, and buying “VG” stock is seen as a big risk, especially since the company is not yet profitable. In order to generate long-term profit for its investors, Vonage will need to not only increase its ROI on marketing campaigns, but also hold its position against a sea of formidable competitors.

Not an easy task to say the least, but harder jobs have been done. Stay tuned for all the latest news and commentary in the days and weeks to come.

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock