Vonage’s $531m initial public offering was the worst US market debut in more than two years. It followed a sharp correction in US markets this month, with the technology-dominated Nasdaq Composite index falling 7.5 per cent in the past two weeks.

The Vonage float netted a total first-day loss for its investors of $67.5m – making it the fifth-worst market debut in New York in the past quarter century, according to Jay Ritter, finance professor at the University of Florida.

The market’s sharp rebuke for Vonage demonstrated the growing “flight to quality” among global investors, who showed little interest in picking up shares of a company that was still losing money, even though it was operating in a growth sector.

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