Conservative Cable Channel Newsmax Skyrockets Over 700% in NYSE Debut
Newsmax, the conservative media company, made a remarkable entrance into the public market on Monday, with its shares surging over 700% during its first day of trading on the New York Stock Exchange (NYSE). The stock, trading under the ticker symbol "NMAX," opened at $14, peaked at $78.27, and settled at $62 by the close, elevating the company's valuation to nearly $8 billion.
The impressive debut followed Newsmax's initial public offering (IPO), which raised $75 million through the sale of 7.5 million shares priced at $10 each. This offering constituted approximately 6% of the company's total shares, a limited float that likely contributed to the stock's rapid ascent.
Prior to the IPO, Newsmax had bolstered its financial position by securing $225 million through a private preferred stock placement in February. The company's revenue demonstrated significant growth, increasing by 35% in the first half of 2024 to $79.8 million, though it reported a net loss of $55.5 million during the same period.
Founded in 1998 by CEO Christopher Ruddy, Newsmax has evolved into the fourth-most-watched news channel in the United States, reaching over 40 million Americans monthly across its television broadcasts and multi-platform content. The network has gained prominence for its consistent support of former President Donald Trump, often featuring him as a guest and broadcasting election-related content that resonates with conservative audiences.
The stock's extraordinary performance led to multiple trading halts throughout the session due to high volatility. Despite a slight decline of about 3% in after-hours trading, the debut underscores strong investor interest in media outlets that cater to conservative viewership.
Newsmax's successful IPO and subsequent stock surge highlight its growing influence in the media landscape and suggest a robust appetite among investors for companies aligned with conservative perspectives.
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