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AMC Entertainment raised about $250 million in new equity capital, completing the sale Monday during a renewed craze for meme stocks sparked by the return of “Roaring Kitty.”
The cinema operator sold 72.5 million shares in a public offering it launched on March 28. AMC sold the shares at an average price of $3.45 per share, excluding commissions and fees, it said in a statement.
AMC shares rose another 100% in premarket trading Tuesday following news of the stock sale.
AMC shares opened Monday at $3.52, up about 21% from Friday, likely prompting AMC to complete the stock sale at those elevated prices. As wild trading continued Monday, AMC shares more than doubled to an intraday high of $5.88. The stock closed Monday’s session up more than 78% at $5.19.
AMC
Roaring Kitty, the man who inspired 2021’s stock meme mania, has resurfaced online with a cryptic image showing a man in a chair leaning forward, but it was enough to spark a buying frenzy among amateur traders. GameStop shares surged 74% on Monday amid multiple trading halts due to volatility.
Shares of the video game retailer rose more than 130% in premarket trading Tuesday.
The selling agents for AMC’s shares were Citigroup, Barclays, B. Riley Securities and Goldman Sachs.