Finance
AMC raises $250 million in stock during meme rally, with shares still up 90% in premarket
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AMC Entertainment raised about $250 million in new equity on Monday amid the revived meme stock frenzy sparked by the return of “Roaring Kitty.”
On Monday, the cinema operator sold 72.5 million shares in a share offering on the market. AMC sold these shares at an average price of $3.45 per share, before commissions and fees.
AMC shares rose 97% in premarket trading Tuesday after the stock sale.
The average selling price is in the lower range from Monday’s wild trading, where AMC more than doubled to hit an intraday peak of $5.88. The stock closed Monday’s session more than 78% higher at $5.19. AMC previously announced the offering on March 28, but waited until Monday to finalize it.
AMC
Roaring Kitty, the man who inspired the meme stock mania of 2021, resurfaced online with a cryptic image of a man in a chair leaning forward, but that was enough to spark a buying frenzy among amateur traders. Shares of GameStop soared 74% on Monday. with a slew of trading halts due to volatility.
The video game company rose more than 130% in premarket trading on Tuesday.
Citigroup, Barclays, B. Riley Securities and Goldman Sachs served as the selling agents for AMC’s stock offering.
