Newsmax Files for IPO

(Reuters) – Conservative U.S. cable news channel Newsmax announced on Thursday that it has confidentially filed for an initial public offering (IPO) in the United States.

Expected rate cuts by the U.S. Federal Reserve, along with a backlog of IPO candidates, could accelerate stock market listings into 2025.

The media network reaches over 40 million Americans through television, streaming, online, and print platforms. It aims to raise up to $75 million in the public offering, anticipated later this year or early 2025.

Founded in 1998 by Christopher Ruddy, Newsmax began as a digital brand, launching its cable news channel in 2014. The network is accessible for free on platforms such as YouTube and the Newsmax app.

For 2024, the company expects $180.5 million in revenue, a rise from $135.3 million last year, as per their investor presentation. Newsmax’s broadcasting business accounts for about two-thirds of its total revenue, with the remainder coming from digital operations.

Based in Boca Raton, Florida, Newsmax has also initiated a private placement, seeking to raise at least $150 million through convertible preferred stock before the proposed IPO. The private placement could potentially raise up to $225 million and requires a minimum investment of $5,000 from prospective investors.

Companies often choose to file for IPOs confidentially to protect sensitive information. Newsmax plans to list on the New York Stock Exchange under the symbol “NMAX”. Digital Offering is serving as the placement agent for both the private placement and the proposed IPO.