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Newsmax (NMAX, Financials) saw its stock price skyrocket by more than 720% on its first day of public trading Monday, marking one of the most dramatic market debuts in recent years.
The conservative news network's stock started at $14, which was a lot more than its $10 initial public offering price. It ended the day at $82.25 after a day of huge price changes.Newsmax stock trading was stopped several times during the session because of big price changes. There were at least a dozen stops because of instability. There were 14 minutes left until the closing bell when the last stop was made.During its IPO, the company sold 7.5 million Class B shares at a price of $10 each. This brought in $75 million. To take part in the sale, investors had to buy at least 50 shares, which is $500 worth of stock. On the first day of trading, 6.17 million shares were bought and sold.There are two types of shares in Newsmax: Class A shares and Class B shares. CEO Chris Ruddy still has more than 81% of the votes, which means he can still decide the company's strategic direction even though it is now public.There is a lot of interest in right media among investors, as shown by the high demand for Newsmax stock. Newsmax is in competition with bigger networks like Fox News (FOX, Financials) and streaming services that want to attract people who lean to the right. In the next few days, the market will be paying close attention to how the stock does as it figures out its long-term value.
This article first appeared on GuruFocus.