Cable news channel Newsmax confidentially files for US IPO

(Reuters) -Conservative U.S. cable news channel Newsmax said on Thursday it had confidentially filed for an initial public offering in the United States.

Expected rate cuts by the U.S. Federal Reserve, along with a long backlog of companies seeking to go public, is expected to increase the pace of stock market listings into 2025.

The media network, which reaches more than 40 million Americans through its television, streaming, online and print platforms, is seeking to raise up to $75 million in the public offering, which is expected to take place later this year or in early 2025.

Founded in 1998 by Christopher Ruddy, Newsmax is one of the more formidable challengers on the right to Rupert Murdoch’s Fox News.

Newsmax started as a digital brand 25 years ago and launched its cable news channel in 2014.

In addition to the cable news channel, the network streams for free on platforms such as YouTube and a Newsmax app.

The company expects revenue of $180.5 million in 2024, compared with $135.3 million last year, according to an investor presentation.

Newsmax’s broadcasting business makes up about two-thirds of its total revenue, with the rest coming from its digital operations.

Boca Raton, Florida-based Newsmax has also launched a private placement as it looks to raise capital before the proposed IPO.

The company is seeking to raise at least $150 million through the private placement by offering convertible preferred stock.

The private placement, which could potentially raise up to $225 million, is open to investors for a limited time.

Companies often file for IPOs confidentially to keep sensitive information under wraps for as long as possible.

Newsmax expects to list on the New York Stock Exchange under the symbol “NMAX”.

Digital Offering is the placement agent for the private placement and the proposed IPO.