AMC Raises $250 Million in Stock Sale Amid Meme Stock Rally, Shares Surge 90%

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AMC Entertainment Holdings Inc. successfully raised approximately $250 million through a stock sale completed on Monday, coinciding with the resurgence of meme stock enthusiasm fueled by the return of “Roaring Kitty.”

The movie theater chain executed an at-the-market equity offering, selling 72.5 million shares at an average price of $3.45 per share before commissions and fees, according to a filing.

Following news of the stock sale, AMC’s shares skyrocketed by 94% on Tuesday, prompting trading halts due to volatility.

Opening at $3.52 on Monday, up 21% from the previous session, AMC capitalized on the elevated stock prices to finalize its equity offering. The stock surged further during the day, reaching an intraday peak of $5.88 and ultimately closing at $5.19, marking a more than 78% increase.

The reappearance of “Roaring Kitty,” a key figure in the 2021 meme stock frenzy, on social media with a cryptic image spurred amateur traders into a buying frenzy. This phenomenon extended beyond AMC, with shares of GameStop surging 74% on Monday and over 100% early on Tuesday, leading to multiple trading halts.

Citigroup, Barclays, B. Riley Securities, and Goldman Sachs acted as sales agents for AMC’s equity offering.

Jean S. May 14, 2024