Newsmax Files for IPO in the US Amid Expected Federal Reserve Rate Cuts and Growing Market Listings Trend
Conservative U.S. cable news channel Newsmax has confidentially filed for an initial public offering in the United States, as anticipated rate cuts by the U.S. Federal Reserve and a surge in companies seeking to go public are set to boost stock market listings until 2025.
With a reach of over 40 million Americans across various platforms, Newsmax aims to raise up to $75 million in the public offering, scheduled for later this year or early 2025. Founded by Christopher Ruddy in 1998, Newsmax has evolved from a digital brand to a cable news channel in 2014, streaming for free on platforms like YouTube and a Newsmax app.
The company projects revenue of $180.5 million in 2024, up from $135.3 million in the previous year, with its broadcasting business accounting for two-thirds of total revenue and the remainder from digital operations. Headquartered in Boca Raton, Florida, Newsmax has initiated a private placement to raise capital before the IPO, aiming for at least $150 million through convertible preferred stock offerings, open to investors with a minimum investment of $5,000.
Newsmax is expected to list on the New York Stock Exchange under the symbol "NMAX", with Digital Offering serving as the placement agent for the private placement and proposed IPO. By filing for an IPO confidentially, Newsmax aims to protect sensitive information until necessary.
In conclusion, Newsmax's move to go public amidst favorable market conditions and growing investor interest signifies potential growth opportunities for the company and potential investors. As the company expands its reach and revenue streams, individual investors can consider the IPO as a potential investment opportunity in the evolving media landscape.