Initial Public Offering

Initial Public Offering

Vonage went public on May 24, 2006 at a price of $17 per share, and dropped 23.5% to $13 the following day. The closing price on December 15, 2008 was $1.00.
Prior to the IPO, Vonage solicited its customers via automated phone call announcements and e-mails with an offer to buy shares of the IPO. The price fell $2.15, or 12.7%, to close at $14.85 on the New York Stock Exchange, the worst trading day for any IPO in 2006 up to that point. The IPO raised $531 million for the company. Vonage's post-IPO handling of individual pre-IPO investors resulted in a class-action lawsuit(pending March 2007), earning the Vonage IPO a Business 2.0 Magazine award as 14th of 101 Dumbest Moments in Business for 2006.