Vonage is cutting its customers in on its initial public offering.
In an e-mail, the VOIP (voice over IP) provider detailed a plan to allow its customers direct access to shares of its IPO offering, currently expected to price between $16 and $18.
“Because much of our success is attributable to our customers, we have asked the underwriters of the IPO to reserve shares of common stock for sale to certain Vonage customers at the IPO price in a Directed Share Program,” the company said in an e-mail.
To participate, potential investors need to have been a Vonage customer from Dec. 15, 2005, through Feb. 1, 2006. Customers don’t have to remain with Vonage to participate in the IPO.
The big question is whether customers will want to participate. Vonage, which had 1.6 million subscriber lines as of April 1, had a net loss of $85 million on revenue of $119 million for the quarter ending March 31. For 2005, Vonage lost $261 million on revenue of $269 million. Vonage competes with everyone from Verizon and AT&T to Skype.
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