• AMC Entertainment raised about $250 million through a stock sale during the revived meme stock craze
• AMC sold 72.5 million shares at an average price of $3.45 per share
• AMC’s shares jumped over 30% after the news of the stock sale, and trading was briefly halted due to volatility
AMC Entertainment raised about $250 million of new equity capital by completing a stock sale on Monday, taking advantage of the revived meme stock craze triggered by the return of Roaring Kitty.
Details of the Stock Sale
The movie theater operator sold 72.5 million shares in an at-the-market equity offering that it launched on March 28. AMC sold that stock at an average price of $3.45 per share before commissions and fees, according to a filing.
AMC shares jumped another 37% on Tuesday following news of the sale. The stock more than doubled at one point earlier in the session, and trading was paused for volatility.
Shares of the company opened at $3.52 on Monday, up about 21% from Friday, likely spurring AMC to complete its equity sale at these elevated prices. As Monday’s wild trading continued, AMC more than doubled to hit an intraday peak of $5.88. The stock closed Monday’s session up more than 78% at $5.19.
Revived Meme Stock Interest
Roaring Kitty, the man who inspired the meme stock mania of 2021, resurfaced online with a cryptic image showing a man in a chair leaning forward. That was enough to spark a buying frenzy among amateur traders. Shares of GameStop surged 74% on Monday, with a slew of trading halts for volatility.
The video game seller soared more than 100% early Tuesday.
Advisors on the Offering
Citigroup, Barclays, B Riley Securities and Goldman Sachs were the sales agents of AMC’s equity offering.
