NewsMax (NYSE:NMAX) shares are set to move higher today after rocketing to the stratosphere in the first day of trading.
NewsMax recently raised $225 million in a Reg D offering sold to accredited investors. Following the Reg D round, NewsMax pursued a Reg A+ offering raising the maximum amount of $75 million. Under the Reg A exemption, securities may be sold to both accredited and non accredited investors. NewsMax sold shares at $10 each using Reg A.
Today, NewsMax, after closing over $83 a share, is trading in pre-market at around $112 $117 a share. NewsMax now has a market capitalization of over $20 billion.
NewsMax is an early-stage cable news company that leans more conservative. The company was launched as the founder viewed that Fox had no true competitor. Today, NewsMax says it is just behind CNN in viewership.
As for the share price, you can expect that at some point, NewsMax will hit a ceiling and reverse at least some of the spectacular gains. For now, early investors are probably pleased with their decision to back the firm.
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