Vonage Holdings Corp. said Monday that it is starting a program that will allow selected customers of its telephone service to participate in its initial public offering.
Called the “Vonage Customer Directed Share Program,” Vonage is setting aside 13.5% of the 31.25 million shares it expects to issue through the IPO -- about 4.2 million shares. To be eligible for the program, participants must have been Vonage customers on or prior to Dec. 15 and must have been members in good standing through Feb. 1; they must be U.S. citizens; and they must have a valid U.S. Social Security Number. Only individual customers can participate in the program -- no companies or trusts are eligible, according to a press release. Vonage said in the release that participants do not have to be current customers of Vonage.
The program is being administrated through a Web site (ipoinfo.vonage.com), and customers will be required to open up a limited-purpose brokerage account with either Smith Barney (a division of Citigroup), Deutsche Bank Alex. Brown or UBS Financial Services Inc. Customers choosing to participate must buy at least 100 shares but not more than 5,000.
Citigroup, Deutsche Bank and UBS are serving as underwriters for the offering.
Vonage said late last month that it plans to raise $500 million-$600 million through the offering, priced at $16-$18 per share. No date has been set yet for the IPO.