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Newsmax, the cable news channel, has confidentially submitted a filing for an initial public offering (IPO) in the US. This move signals the company's intention to go public and marks a significant development in its business strategy. The filing is part of Newsmax's efforts to expand its market presence and raise capital through the stock exchange.
On Thursday, the conservative U.S. cable news channel Newsmax announced that it had filed confidentially for an initial public offering (IPO) in the U.S.
The anticipated rate cuts by the U.S. Federal Reserve and a substantial backlog of companies aiming to go public are expected to accelerate the pace of stock market listings into 2025. Newsmax, which reaches over 40 million Americans through its various platforms including television, streaming, online, and print, plans to raise up to $75 million from the public offering, anticipated to occur later this year or early 2025.
Established in 1998 by Christopher Ruddy, Newsmax began as a digital brand and launched its cable news channel in 2014. The network also offers free streaming on platforms like YouTube and its Newsmax app. The company projects revenue of $180.5 million for 2024, up from $135.3 million last year, based on an investor presentation. Newsmax’s broadcasting segment generates approximately two-thirds of its total revenue, with the remaining third from its digital operations.
Based in Boca Raton, Florida, Newsmax has initiated a private placement to raise funds ahead of the IPO. The company aims to raise at least $150 million through this private placement by offering convertible preferred stock. The private placement, which could potentially raise up to $225 million, is open to investors for a limited time with a minimum investment requirement of $5,000. Companies often opt for confidential IPO filings to keep sensitive details private for as long as possible.
Newsmax plans to list on the New York Stock Exchange under the ticker symbol "NMAX." Digital Offering is serving as the placement agent for both the private placement and the proposed IPO.
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Source: Reuters
