Newsmax makes waves on Wall Street, soars 500% in first trading day as conservative viewership surges

Conservative cable news network Newsmax has grabbed Wall Street's attention, surging more than 500% after its market debut in just a few hours of trading, as per a report. The surge comes as the network benefits from an increasingly conservative audience base, driven by US president Donald Trump's win in the elections, reported CNBC.

Newsmax Stock Surges

Newsmax started trading on the symbol "NMAX," opening at $14 a share after it priced its initial public offering (IPO) at $10 on Monday, according to the report. By just midday, the stock had surged more than 500%, reported CNBC.

Newsmax raised $75 million via the sale of 7.5 million shares of Class B common stock at a price of $10 per share on Friday, reported CNBC.

A Rare IPO in TV News

Newsmax's move to go public is rare, Dealogic's data revealed that it's been decades since a comparable television network has listed on the stock market, according to the report. With big players like Fox News, CNN, and MSNBC dominating the landscape, Newsmax has become the "number four cable news channel in the United States," according to Newsmax CEO Christopher Ruddy.

Ruddy said, “I think it’s a pretty big achievement for a 10-year-old, new cable company,” quoted CNBC.

Nielsen found that Newsmax ranks in the top 20 among cable networks average viewership in both primetime and daytime, reported CNBC.

The CEO also mentioned that, “We believe we’re conservative with an independent news mission, and ask tough questions of the Trump administration,” quoted CNBC.

FAQs

What is Newsmax's stock symbol?
Newsmax's stock symbol is “NMAX.”

What price did Newsmax’s shares open at?
Newsmax shares opened at $14, after pricing at $10.