Newsmax (NYSE:NMAX) IPO Priced at $10 a Share, Opens 735% Above IPO Price

Newsmax (NYSE:NMAX), founded by Christopher Ruddy in 1998, went public yesterday on the New York Stock Exchange after US President Donald Trump's election boosted

Newsmax (NYSE:NMAX), founded by Christopher Ruddy in 1998, went public on the New York Stock Exchange yesterday.

The conservative TV news outlet, which has seen a boost in ratings and network audience since US President Donald Trump's election, saw its stock price soar.

Its IPO success also shares similarities with the performance of other companies associated with conservative media. Video-sharing platform Rumble (NASDAQ:RUM) and Trump Media & Technology Group (NASDAQ:DJT) have rallied ahead of the 2024 presidential election.

Nmax shares opened late Monday morning at £10.87 ($14) apiece after pricing its class B common shares at £7.76 ($10) apiece to raise £58.22 million ($75 million).

Shortly after, they surged over 735% to close at £64.84 ($83.51) on Monday and are up another 41% during Tuesday's pre-market hours, surpassing a £10.09 billion ($13 billion) valuation.

The Florida-based company began as a digital brand before announcing its cable news channel over a decade ago. It also offers free streaming through its app and YouTube.

Announcing its IPO plans earlier this year, Newsmax is planning to list on the New York Stock Exchange under the ticker "NMAX."

The company is a subsidiary of Newsmax, LLC, and the move marks a rare instance of a TV network going public. Indeed, according to Dealiogic data, no new TV networks have hit the public markets in almost two decades.

The timing of the NYSE debut also coincides with the fast-growing demand for right-wing primetime content.

It comes as traditional cable TV has struggled amid a consumer exodus to streaming platforms.

Meanwhile, the timing of the NYSE debut coincides with the surging demand for right-wing primetime content.

Trump's reelection has seen viewers increasingly turn to conservative news channels like Fox News and Newsmax.

The new company merges with SPAC (Special Purpose Acquisition Company) in a bid to capitalise on the booming market for blank-check firms.

However, despite the stellar performance, some institutional investors expressed concerns over Newsmax's financial standing.

In H1 2024, the company recorded £62.11 million ($80 million) in revenue, 60% of which came from advertising sales, according to its regulatory filings.

But it also generated a net loss of £42.7 million ($55 million) and listed £110.24 million ($142 million) in total liabilities with assets of £53.57 million ($69 million).

Its stock price surge quickly sparked speculation across markets and social media platforms, with many users drawing parallels with the 2021 GameStop rally.

However, institutional investors expressed caution regarding the company's financial health, given its history of profitability struggles.