Red Herring, May 31, 2006

VoIP provider reportedly plans to reimburse underwriters for shares investors refused to pay for.

Vonage plans to reimburse investment banks that underwrote its underwhelming IPO last week for the shares its customers said they would buy, but decided not to, according to reports Wednesday.

The Holmdel, New Jersey-based VoIP provider gave its customers the opportunity to buy up to 15 percent of the 31.25 million shares it put up for sale, according to The New York Times. Approximately 10,000 of its 1.6 million customers took it up on the offer.