AMC raises $250 million in stock sale during meme rally, shares still up 110% in premarket
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AMC Entertainment raised about $250 million of new equity capital on Monday during the revived meme stock craze triggered by the return of "Roaring Kitty."
On Monday, the movie theater operator sold 72.5 million shares in an at-the-market equity offering. AMC sold those shares at an average price of $3.45 per share before commissions and fees.
AMC shares more than doubled in premarket trading Tuesday following the stock sale.
The average selling price is at the lower range of Monday's wild trading where 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. AMC previously announced the offering on March 28, but waited until Monday to complete it.
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% Monday with a slew of trading halts for volatility.
The video game company soared more than 130% in premarket trading Tuesday.
Citigroup, Barclays, B. Riley Securities and Goldman Sachs were the sales agents of AMC's equity offering.