Patrick T. Fallon / AFP / Getty Images
Takeaways
- Newsmax's stock soared in its first day of trading on the NYSE Monday.
- The conservative cable news company sold shares at $10 each to close a $75 million IPO Friday.
- The stock's intraday surge Monday would give Newsmax a value of close to $8 billion.
Newsmax (NMAX), following a $75-million initial public offering, saw its shares soar in their first day of trading on the New York Stock Exchange.
The cable news company’s stock opened at $14, above the IPO of $10 per share. It jumped up to $78.27 in one day before reversing gains. According to a recent filing, Newsmax’s stock is valued at $8 billion based on its total shares outstanding.
The IPO comes after Newsmax raised a total of $225 million by selling preferred shares to accredited investors at the beginning of this month.
Most of Newsmax's revenue comes from advertising, according to company disclosures. The company said in a regulatory filing that it posted nearly $80 million in total revenue in the first six months of 2024—more than 60% of which was from ads—versus about $135 million in sales for all of 2023.
