February 8, 2006

According to a regulatory filing today, Web telephone service provider Vonage Holdings Corp. wants to raise $250 million in an IPO (initial public offering).

Even while sustaining losses of nearly $190 million for the first 9 months of last year, the telephone service provider says it is ready to go ahead with its plans of becoming public in the first quarter of 2006.

So far, the terms have not been set for the offering, expected to be lead by underwriters Citigroup, Deutsche Bank Securities and UBS Investment Bank, according to the filing with the Securities and Exchange Commission.

Vonage, which says it has more than 1.4 million subscriber lines as of Feb. 8, lost $189.6 million on revenue of $174.0 million in the first nine months of 2005, according to the prospectus.

The company spent $176.3 million on marketing in the same period, the filing shows.

Source: CNN Money