Newsmax's recent IPO has become a significant event on Wall Street, elevating the visibility of the small investment bank Digital Offering, responsible for the deal. Unlike major firms like Goldman Sachs, Newsmax chose the lesser-known Digital Offering, which specializes in small-cap companies and unique public offerings via Regulation A+. This strategy allowed Newsmax to raise $75 million, despite reporting substantial losses. Following its IPO, Newsmax's stock price soared dramatically, highlighting the impact of the unconventional approach and indicating potential growth for Digital Offering in future deals.
"It's huge for us," Elenowitz told Business Insider in an interview. "The small-cap community knows who we are, but the rest of Wall Street didn't."
Digital Offering advises companies valued at $1 billion or less - what's considered small potatoes for some bulge-bracket shops.
Newsmax relied on a lower-cost, less onerous form of a public offering termed Regulation A+, raising $75 million selling 7.5 million shares at $10 each.
Despite Newsmax losing $72 million in 2024, the stock shot up 735% on its first day of trading, closing the week up over 1,200% at $233.
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