Vonage Offering Shares To Customers

Vonage is not exactly signaling strength to the market.  From BroadbandReports.com:

Vonage users in our forums are noting (also see this thread) they're receiving an offer from Vonage to nab Vonage stock at the IPO price ($16-$18 a share).  "Because much of our success is attributable to our customers, we have asked the underwriters of the IPO to reserve shares of common stock for sale to certain Vonage customers at the IPO price in a Directed Share Program," the e-mail proclaims.  Vonage will be listed on the New York Stock Exchange under the symbol "VG", but no date for the IPO has been announced.  The e-mail directs interested users to this website.

We've heard of shareholders being offered discounts on a company's products, but this is a new one.  Hmm, wonder if they're worried that nobody is interested in their IPO.  Imagine, should the shares founder, the kind of complaints they'll get to customer service.

Comments

[Long Distance Talk]

Well, the share price has dropped as much as 25% in two days, so customer service is probably getting some complaints already - certainly shaping up to be a PR nightmare.

It even seems that some investors were actually told they had been allocated 0 shares, just to find out after the drop that they got shares after all: Vonage Allocating Shares After The Fact? Now THAT can not be good for PR!