Newsmax Valued Near $8 Billion After Stock Soars in NYSE Debut
Newsmax shares soared over sixfold in their NYSE debut, valuing the conservative media company near $8 billion. The IPO price was $10, but shares opened at $14 and peaked at $78.27, trading at $82.25 later. The company raised $225 million from preferred shares in March and reported $80 million in revenue for H1 2024, primarily from ads. Newsmax's 2023 sales reached $135 million, reflecting significant growth amid competition from digital platforms. The stock trades under the ticker NMAX.
Newsmax (NMAX, Financials) shares surged in their debut on the New York Stock Exchange on Monday, rising more than sixfold from the initial public offering price and pushing the conservative media company's valuation close to $8 billion.
The public sale of shares in the Florida-based company for $10 each brought in $75 million on Friday. Shares started trading on Monday at $14 and went up to as high as $78.27 before losing some of their value. As of 3:46 p.m. EDT Monday, shares of Newsmax were trading at $82.25, up $72.25, or 722.5%.
A regulatory statement says the company raised $225 million in cash by selling preferred shares to qualified buyers in early March.Newsmax is known for its right news shows on television. Most of its money comes from ads. The business said in a filing that it made $80 million in the first half of 2024, with more than 60% of that coming from selling ads. Newsmax said it made about $135 million in sales for the whole year of 2023, which is a lot of growth from the previous year.
A small group of media companies, including Newsmax, have tried to go public in the past few years. This is because digital streaming platforms are becoming more and more competitive with standard cable networks. There is a lot of interest in the stock because investors want to buy small media brands with loyal fans, even though the media world as a whole is still breaking up.
The stock trades on the New York Stock Exchange with the ticker NMAX.
