Vonage said that customers who reserved shares in the Internet phone company's initial public offering last week must pay for their stock, despite the fact that the shares have already lost 29% of its value since the offering. Previously, the company had suggested it might not force customers to pay for their shares, since doing so could alienate them.

In the weeks before its IPO, Vonage took the unusual approach of allowing customers and other people close to the company to reserve shares without putting down any money. They weren't required to pay for the shares until May 30, six days after the May 24 IPO. By the later date, Vonage had established itself as the worst-performing IPO of the year. Shares, which were originally priced at $17, had tumbled to $12.50 by the close on May 30, and slipped again yesterday, to $12.02. Many customers now appear reluctant to pay the original price for their shares.


Related: vonage sets ipo price

Source: Vonage Stock price gone for a spin


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