Investing.com -- The IPO for conservative cable TV network Newsmax Inc (NYSE:NMAX) surged over 700 percent in its IPO debut on the NYSE Monday.
In the offering, the company raised the maximum allowed of $75 million under Regulation A+ through the sale of 7.5 million shares of Class B Common Stock at $10.00 per share.
Shares closed the session at $83.51, up 735 percent. Shares added another 1% in after-hours trading.
Regulation A+ lets companies raise up to $75 million from the public through a streamlined process that eases disclosure and compliance compared to a traditional IPO, while still maintaining investor protections.
In addition to the IPO funds, Newsmax also recently raised $225 million via a preferred offering.
Buoyed by the election of U.S. President Donald Trump, Newsmax has ascended to the fourth highest-rated cable news channel in the United States, trailing just behind CNN.
“This incredibly successful offering, combined with our previous Preferred Offering, provides us with the capital and financial freedom to accelerate our growth initiatives, expand our programming and further enhance our digital presence,” CEO Christopher Ruddy said. “We are deeply grateful to the investors in Newsmax and are excited for the journey ahead.”
The company will have a total of 128.4 million shares outstanding following the offering, suggesting a market cap of $10.72 billion based on Monday’s closing price.
For the first six months of 2024, the company posted revenue of $79.83 million, up from $53.33 million in the same six month period in 2023. The net loss for the six months was $55.5 million, versus $38.85 million in the same six month period of 2023.
The offering was led by Digital Offering LLC.