Newsmax (NMAX) Soars 735% on NYSE Debut After $75M Reg A+ IPO

Conservative cable news network Newsmax Inc. (NYSE: NMAX) made a dramatic entrance on the New York Stock Exchange Monday, closing at $83.51—up 735% from its IPO price of $10 per share. The stock added another 1% in after-hours trading.

Newsmax raised $75 million, the maximum allowed under Regulation A+, by selling 7.5 million shares of Class B Common Stock. Regulation A+ enables smaller companies to raise capital with fewer regulatory hurdles compared to a traditional IPO while maintaining investor protections.

The IPO was led by Digital Offering LLC, and follows a separate $225 million preferred equity raise, bringing total recent fundraising to $300 million.

CEO Christopher Ruddy expressed optimism, saying the funds would allow Newsmax to boost its programming, accelerate growth, and expand its digital footprint. The network, known for its conservative stance and strong support from Trump-era viewers, has risen to become the fourth-highest-rated U.S. cable news channel, behind CNN.

Following the offering, Newsmax has approximately 128.4 million shares outstanding, giving it a market cap of $10.72 billion based on Monday’s closing price.

Financially, the company posted $79.83 million in revenue for the first half of 2024, a significant increase from $53.33 million during the same period in 2023. However, it also reported a net loss of $55.5 million, up from $38.85 million a year earlier.

Newsmax’s IPO performance highlights growing investor interest in alternative media platforms and could mark a turning point for conservative broadcasting in the public markets.