Cyber-wellness Means Cyber-awareRead more Addressing maternal mental healthcare in AfricaRead more Qatar v. Ecuador to kick off FIFA World Cup 2022™ on 20 NovemberRead more Webb Fontaine Announces Launch of Niger National Single Window (NNSW) to Bolster TradeRead more Ethiopia: Loan from United Nations Fund Allows Food and Agriculture Organization (FAO) to Scale Up Fertilizers for Farmers in TigrayRead more How Choosing the Right Printer Helps Small Businesses and Content Creators to Save Time, Maximise Productivity and Achieve GrowthRead more Eritrea: World Breastfeeding WeekRead more Eritrean community festival in Scandinavian countriesRead more IOM: Uptick in Migrants Heading Home as World Rebounds from COVID-19Read more Network International & Infobip to offer WhatsApp for Business Banking Services to Financial Institution Clients across AfricaRead more

AMC says it has completed share offering, raising $587.4 mn

show caption
AMC said it successfully completed a large equity offering, raising $587.4 million./AFP
Print Friendly and PDF

Jun 04, 2021 - 08:21 AM

NEW YORK — Retail investor darling AMC said Thursday it had successfully completed a large equity sale, raising $587.4 million amid intense volatility in the movie theater stock.

AMC Entertainment said it completed the stock sale of 11.55 million shares, with an average price of $50.85.

Shares of AMC began the year valued at around $2 but have soared amid buying from the so-called “Reddit Revolution” of small investors coordinating on social media in support of beaten-down stocks.

The successful fundraising run boosts AMC’s balance sheet, Chief Executive Adam Aron said in a press release, “providing valuable flexibility to respond to potential challenges and capitalize on attractive opportunities in the future.”

An AMC securities filing earlier Thursday included an unusually blunt investor warning about a trading dynamic that many observers have labeled irrational.

“We believe that the recent volatility and our current market prices reflect market and trading dynamics unrelated to our underlying business, or macro or industry fundamentals, and we do not know how long these dynamics will last,” the company said in a securities filing.

“Under the circumstances, we caution you against investing in our Class A common stock, unless you are prepared to incur the risk of losing all or a substantial portion of your investment.”

Shares were down 3.1 percent at $60.64 in early afternoon trading after getting as low as $37.66 earlier in the session.

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.