Vonage Commands Its Customers to Pay for Shares
This comes as a shock to me. Till yesterday Vonage was saying that it would be reimbursing the bankers in case its customers refused to pay for the shares allotted to them but now it seems it is backing from what it had said. It is now asking its unwilling customers to pay for the stock even though the shares have already lost 29% of their value since its debut. Vonage had allowed its customers to reserve the shares without paying anything for it until 30th May but when it has turned a cropper at the bourses people don't want to burn their fingers by paying for these shares.
Till Friday only about 40% of the 9,000 customers who had reserved these shares had forked out for money for them. Vonage is certainly in a precarious situation. It seems to be caught between the devil and deep blue sea. If it asks its unwilling customers to pay it might create a PR problem or even encourage customers to shun its service and if it does not ask them to pay then institutional investors might also ask for the same treatment. Now only god can help Vonage!!