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AMC cashes in on Reddit-trading frenzy with $428 million share sale

Published 2021-05-13, 01:20 p/m
Updated 2021-05-13, 01:24 p/m
© Reuters. Closed signs are seen on an AMC Theatre during the outbreak of the coronavirus disease (COVID-19), in New York

© Reuters. Closed signs are seen on an AMC Theatre during the outbreak of the coronavirus disease (COVID-19), in New York

(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.

© Reuters. Closed signs are seen on an AMC Theatre during the outbreak of the coronavirus disease (COVID-19), in New York

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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