AMC completes $250 million stock sale during meme rally, shares jump 90%
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AMC Entertainment raised about $250 million of new equity capital, completing the sale Monday during the revived meme stock craze triggered by the return of «Roaring Kitty.»
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, the filing said.
AMC shares soared another 94% on Tuesday following news of the sale and was paused for volatility at one point.
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.
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, but 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.
Citigroup, Barclays, B. Riley Securities and Goldman Sachs were the sales agents of AMC's equity offering.
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