The lead up to today's Vonage IPO has been turbulent, at best for the most-recognizable name in voice-over Internet protocol services. The IPO priced at $17 per share, right in the middle of the range and raised $531 million for the company. As of 12:45pm EDT the stock is trading at $15.09 per share, down 11%.
Shares plummeted in early trading on the NYSE, dropping as low as $14 per share, but seem to be rebounding. The IPO is the largest tech IPO in more than two years. Reports today credited the drop in value of Vonage's shares to increased competition from the cable companies, who are bundling their VoIP service into a triple play service featuring cable, broadband Internet access and unlimited VoIP calling all on the same bill. At least they're finally pointing to the correct competitors this time, and not saying "Skype killed the Vonage IPO."
Check back later this afternoon for an end-of-trading update on the stock. — Brian Ward
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Technorati tags: vonage, voip, ipo.
UPDATE: Vonage shares closed the day at $14.85, down about 12.5%.
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