So you didn't get your shares? and Your mad?

Posts: 243 · Vonage Forum Master Joined: Jan 18, 2004 Posts: 243

This is how IPO's have worked since the beginning of time. It's luck of the draw and it helps to know how to read the enviroment when submitting your conditional offer. Those that asked for 5000 and maybe didn't really want to pay for 5000 took a educated risk that demand would be high and knew they would only get a fraction of what was asked for.

Don't be mad a Vonage because the rules where clearly laid out in front of you from the get go.

Posts: 4 · New Forum Member Joined: May 23, 2006 Posts: 4

Vonage sent the message to the loyal customer that they were opening an opportunity to share in the success of the company.

The Vonage PR was in full swing using email, mail, phone messages to share the opportunity.

Once the allocations were out and the same customers that were trying to save a few bucks on their phone bills were excluded from the allocation, I don't think these customers will feel bad switching over to different companies that can package services.

Good luck tomorrow.

Posts: 1 · New Forum Member Joined: May 23, 2006 Posts: 1

Extremely disappointing. I am so frustrated right now. I signed up the day they were offered and have been logging into and checking the damn website everyday since just to be told that "Nope, sorry. You're not rich enough to particpate in this IPO." It's just like every other IPO. Only the rich can play. I thought Vonage was onto something. I thought it was a great move. But nope. I was wrong. I got my hopes up only to have them stomped on. Why couldn't Vonage fulfill the orders from the bottom up instead of top down? And don't tell me that Smith Barney wouldn't make any money. They're charging $50 to anyone that wants to touch their money. They're getting paid for each trade. The size shouldn't matter to them. Maybe I'm missing something. But I don't care. I'm frustrated right now.

Posts: 2 · New Forum Member Joined: May 23, 2006 Posts: 2

But I see it is not. Seems to me the DSP was not really for the customers after all, but a hedge by Vonage against undersubscription. The issue was oversubscribed, so us little guy customers weren't needed.

I am fully aware of the rules and disclosures, but those who entered offers and got nothing have every right to feel used. I can hear Citron laughing all the way to the bank.

I agree with the above poster, my loyalty = my allocation = 0. As soon as I'm offered a better phone deal, I'm outta here.

g

Posts: 75 · Vonage Forum Senior Joined: Apr 26, 2006 Posts: 75

gvansickle wrote:

...The issue was oversubscribed, so us little guy customers weren't needed. ..

The oversubscription of the offering by the brokers had nothing to do with the allocations on the DSP. It was all customer demand. 13.5% of the stock was set asside for customers and customers wanted more than that.

Customers probably wanted in excess of 50% of the company. See the math here... http://www.vonage-forum.com/ftopic14203.html

Posts: 80 · Vonage Forum Senior Joined: May 24, 2006 Posts: 80

gvansickle wrote:

I agree with the above poster, my loyalty = my allocation = 0. As soon as I'm offered a better phone deal, I'm outta here.

If by better deal you mean lower price, that should not be too hard to accomplish, as there are multiple otehr options out there.

As it turned out though, Vonage was doing you a favor by not allocating any shares to your account.