Since you’ve gotten this far in the article, you know the story will not take a turn towards sunshine and daisies. Vonage’s shares took a beating on the very first day and dropped almost 13% below the offer price. The share price has almost continuously slid since then and is now resting at $1.70, a drop of 90% in six years.
Rackspace, an IT hosting company that runs datacenters, went public in August 2008 with a share price of $12.50. Unfortunately, from the first trade, the listing price resolutely remained below the offer price. The share price continued dropping and even reached a low of about $4.5. It took almost a year for Rackspace’s shares to cross the IPO price and since then there has been no looking back. The company’s shares reached almost $60 and are currently being traded at just above $51.
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Jim Love, Chief Content Officer, IT World Canada
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