That headline sounds impressive right? Until you consider that all Vonage customers who meet certain criteria are invited to participate in Vonage’s IPO.
This morning the "Lewisville Businessman" mentioned in the headline, that would be moi, had a voice mail from the Vonage folks re. the IPO. The message pointed me to www.vonageipo.com to see if I qualified for inclusion in the IPO. So I visited the page and clicked on the button to register and was directed to this page which listed the following criteria I need to meet to participate in the IPO:
- You opened an account with Vonage on or prior to December 15, 2005.
- You have maintained your Vonage account in good standing through February 1, 2006.
- You are a U.S. citizen.
- You will be a U.S. resident as of the date of the consummation of Vonages initial public offering.
- You have a valid U.S. social security number.
- You are a natural person. No entities, such as companies and trusts, are eligible to participate.
Other conditions to participation also may apply.
The one about being a "natural person" worries me because, you know, sometimes I get that "not-so-natural" feeling…but I digress. This is my first opportunity to participate in an IPO which means I’m a little worried about Vonage’s future. I mean if they want me then there has to be something wrong, right?
***Update 5/31/06*** I’m very glad I didn’t go for this deal. Here’s a NY Times article that describes the IPO as disastrous. Here’s an excerpt:
Vonage,
tarred by a disastrous initial public offering last week, is scrambling
to reassure investors. The company, which provides Internet phone
service, said yesterday that it would reimburse the bankers who handled
the sale if any Vonage customers refused to pay for shares that were
allotted to them.Vonage gave its customers a chance to
buy as much as 15 percent of the 31.25 million shares that were offered
last week. About 10,000 of the company’s 1.6 million customers
ultimately received shares, which were sold at $17 each, according to a
person briefed on the deal. Customers had until yesterday to open an
account with a specified broker and pay for their shares.Some
customers who participated in the "directed share program" were
reluctant to pay for their shares after the stock fell. The shares have
lost more than 26 percent of their value since their debut last
Wednesday. They fell 52 cents, to $12.50 yesterday.
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Befuddled 
I’ll probably participate, but I hate the fact that you have until next Friday to decide. AND FILL OUT THE PAPERWORK. Annoying.
Good thing I already have a Smith Barney account, but for those they don’t, that’s even worse.
And they’re only shooting to raise $250 million that I could tell. That’s not enough with all the crazy ads they do on television. I think it’s a great company, and I support them fully as a customer, and what they’re doing is great to involve the customer support (the vonage IPO), but as an investor, you have to be wary about the losses and continued spending.
Yeah, as a customer I like Vonage too. Don’t know if I’m gonna do the IPO and I find the need to make all the moves by the 19th annoying as well.
Still, it’s a great service and I really hope they make a good run in the public sector.