Newsmax files for an IPO in late 2024 or early 2025

U.S. cable news channel Newsmax announced on Thursday that it has confidentially submitted paperwork for an initial public offering (IPO) in the U.S.

With anticipated rate cuts by the Federal Reserve and a growing backlog of companies looking to go public, the pace of stock market listings is expected to pick up through 2025.

The media network, which reaches over 40 million Americans across its TV, streaming, online, and print platforms, aims to raise up to $75 million through the public offering, likely to occur later this year or in early 2025.

Founded in 1998 by Christopher Ruddy, Newsmax, considered a conservative cable news outlet, has become a notable competitor to Rupert Murdoch's Fox News on the right. Originally launched as a digital platform, Newsmax expanded to include a cable news channel in 2014.

"The success of our mission to provide Americans with honest and real news is reflected by our loyal and growing following," said Newsmax founder and CEO Christopher Ruddy in the announcement.

Besides its cable network, Newsmax offers free streaming on platforms like YouTube and via its own app.

According to an investor presentation, the company projects revenues of $180.5 million in 2024, up from $135.3 million last year.

Approximately two-thirds of Newsmax's revenue comes from its broadcasting division, while its digital operations account for the remainder.

Based in Boca Raton, Florida, Newsmax has also initiated a private placement to raise funds ahead of the IPO. The company is looking to generate at least $150 million by offering convertible preferred stock, with the potential to raise up to $225 million. This private placement is open to investors for a limited time.

“Qualified prospective investors who meet the qualifications of an "accredited investor" can invest as little as $5,000 in this offering and join Newsmax as a shareholder and owner,” the announcement states.

Companies frequently file for IPOs confidentially to keep sensitive business details private until necessary.

Newsmax plans to list on the New York Stock Exchange under the symbol "NMAX."

Source: Investing.com