AMC Entertainment completes new share offering after raising $587.4 million
Movie theatre chain AMC Entertainment said it has completed its new stock offering declared just on Thursday morning after raising $587.4 million of new equity capital, before commissions and fees, at an average price of approximately $50.85 per share.
When the company announced the offering, it said in a filing that it might sell some of the 11 million shares “from time to time.” Evidently, that time was now as it finished the offering in just around three hours.
In an unexpected move classic of the meme stocks, the shares touched off their lows on news of the finished sale as retail investors rooted for the capital raised and overpassed the dilution of their stakes.
The movie theatre chain’s shares reversed 4% higher after discarding more than 30% earlier on Thursday.
AMC President and CEO Adam Aron confirmed in a statement, “Bringing in an additional $587.4 million of new equity on top of the $658.5 million already raised this quarter results in a total equity raise in the second quarter of $1.246 billion, substantially strengthening and improving AMC’s balance sheet, providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future.”