The long-awaited IPO of the Internet telephony provider, Vonage, is hoping to bring in an extra $250,000,000 in capital.
The Securities and Exchange Commission recieved a filing from the New Jersey based VoIP company on Wednesday. Ticker symbol and share price have not yet been established, however, Vonage says they’re expecting to bring in $250 million from their offerings.
Vonage also informed the press that a new C.E.O. has been staffed, Michael Snyder, the former president of the Tyco Intl. subsidiary of ADT Securities, the former C.E.O. and founder, Jeffrey Citron will serve as Chairman of the Board.
“We are pursuing growth, rather than profitability, in the near term to capitalize on the current expansion of the broadband and VoIP markets and enhance the future value of our company, this strategy, however, may not be successful, and we may never achieve profitability,” says the company.
Many investors say they feel it may be too late for Vonage, with news such as the changes of the VoIP/broadband markets as well as the slow drop off of interest in the company could result in less interested buyers, and potentially slow the growth of the stock. Vonage says hat they have significant growth planned, and are “in the right position to capitalize on the market.”
Market analysts say that the VoIP market still has a huge area to grow in as traditional phone lines die off in exchange for the lower priced broadband telephony market.
“To grow our revenue and our customer base and enhance awareness of our brand, we have chosen to spend significant amounts on our marketing activities and we intend to continue to do so,” said Vonage in their press filings.
Estimates say that it costs Vonage between $150 and $300 in advertising and otherwise to acquire each new customer to their service.
One of Vonage’s main competitors, Skype, has been reported to be losing market share to broadband providers, this news could be something which dramatically effects the success of the IPO.