Newsmax Soars 350%, Triggers Halts as Public Trading Begins
Conservative-focused news network Newsmax opened for trading on its first day as a public stock at $14, above its $10 initial public offering price, and rose from there to a 66% gain before a volatility halt just before 11 a.m. ET.
That halt was quickly followed by another after the stock jumped 137%. As of 11:35 a.m. ET, the stock had been paused for volatility many times, up 350%.
Newsmax had raised $75M in its IPO selling 7.5M Class B shares. Investors were required to commit to a minimum investment of $500, or 50 shares.
The company has set up a dual-class share structure, with Class A and Class B shares, and CEO Chris Ruddy retains more than 81% voting power after the offering.
Newsmax is the parent company of Newsmax Media, Inc., which in turn owns Newsmax Broadcasting LLC, a provider of independent news to Americans.
In the run up to the public offering, Seeking Alpha analysts noted the company's resumed revenue growth but tough compensation and a dual-class structure that raised investor concerns.
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