The company is offering 31.25 million IPO shares, which will start trading Wednesday on the New York Stock Exchange. In April the company. The company also said it would use the proceeds of the IPO to expand its business and cover its operating losses, which have mounted as a result of an aggressive marketing campaign.
Earlier this month, the company. The company's shares will trade under the ticker symbol "VG".
Many on Wall Street are watching the Vonage IPO closely to see how investors receive it. Because the company is not yet profitable and has racked up a high level of debt, some analysts wonder if investors will bite.
Vonage sells an Internet telephony service that allows people to. The company, which has about 1.6 million subscribers, has marketed itself as an inexpensive replacement for traditional telephone service from companies such as Verizon Communications and AT&T. So far, it has built a strong following.
But Vonage now faces stiff competition from a slew of other telephony services, including cell phones,from companies like Comcast and Time Warner, and from companies such as Yahoo, AOL and eBay's Skype.