Newsmax surges over 600% in IPO debut, helped by Trump momentum

Investing.com -- The IPO for conservative cable TV network Newsmax Inc (NYSE:NMAX) surged over 600 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 last traded at $59.80, up 500 percent.  They reached as high as $76.74 intra-day.

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 offering was led by Digital Offering LLC.