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Vonage IPO Tumbles in Debut





I'm so glad I didn't participate in the IPO when Vonage offered the IPO shares to its customers. Now with the first day tumbling, Vonage has a customer-shareholder crisis to deal with -- for those who joined in the program, the savings from all these monthly phone bills were wiped out in one day.

From Wall Street Journal:

Internet phone service provider Vonage Holdings Corp.'s initial public offering encountered shareholder static Wednesday, turning in the worst IPO debut in nearly two years.

Vonage's stock opened at $17 a share on the New York Stock Exchange, flat with its initial public offering price, and declined from there. It ended the day at $14.85 a share, down 12.6%。

It was the worst IPO debut since nanotechnology firm Lumera Corp., whose stock lost 13.5% of its value on its first day of trading in July 2004, according to data tracker Thomson Financial.

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