AMC cashes in on Reddit-trading frenzy with $428 million share sale
Reuters
Published May 13, 2021 13:20
(Reuters) - Cinema operator AMC Entertainment Holdings Inc has raised about $428 million from a share sale, capitalizing on the retail-trading driven surge in its stock earlier this year.
The world's largest cinema chain operator's shares have gained more than five-folds in 2021 thanks to interest from amateur traders on Reddit that were piling into heavily shorted stocks such as GameStop Corp (NYSE:GME) and AMC to punish hedge funds that bet against them.
AMC said in a statement on Thursday it had sold 43 million shares at an average price of $9.94 apiece in the at-the-market offering, sending its stock nearly 16% higher.
The company has raised funds in the past few months to ride out a downturn in its business wrought by pandemic-driven theater closures, delays in the launch of big movies and the growth of video streaming platforms.
It said in January it had raised $917 million since mid-December through equity and debt issues. It raised an additional $304.8 million in the same month through a share sale.
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Written By: Reuters
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