Commlaw Source

FOLLOWING THE TELECOMMUNICATIONS INDUSTRY AND RELATED LEGAL TOPICS

Wednesday, May 24, 2006

Upside-downside ... Vonage completes first day of trading

After being pummeled in the press for weeks, Vonage (VG) completed its first day of public trading today.

On the upside, Vongage raised nearly $500 million.

On the downside, the stock priced at $17 per share, but closed at $14.85, down nearly 13% -- the weakest first day performance of any IPO this year.

Given the substantial negative press from Businessweek Online and other BOC-centric publications, we're not surprised by this one day result (see our May 5 post, for example).

That said, the past is the past, and VG has $500m to prove-in its business plan. The proof is in the profit!

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