AMC Entertainment recently raised approximately $250 million through a new equity capital sale. This move was made during the resurgence of the meme stock craze, which was sparked by the return of the infamous “Roaring Kitty.” The company conducted a 72.5 million share at-the-market equity offering that began on March 28. The shares were sold at an average price of $3.45 per share, excluding commissions and fees. This generated considerable interest in the market, leading to a significant price surge for AMC shares.
Following the news of the equity offering, AMC’s stock price experienced a sharp 94% increase on Tuesday. At one point, trading was even paused due to extreme volatility. The stock opened at $3.52 on Monday, marking a 21% rise from the previous trading day. This surge likely encouraged AMC to proceed with the equity sale at the heightened prices. Throughout Monday’s trading session, AMC’s stock price more than doubled, reaching an intraday high of $5.88 and closing at $5.19, up over 78%.
Roaring Kitty, a key figure in the meme stock frenzy of 2021, reappeared online with a cryptic image featuring a man leaning forward in a chair. Despite the vague nature of this post, it was sufficient to trigger a wave of buying activity among retail traders. Concurrently, GameStop, another target of meme stock speculation, witnessed a 74% surge in its stock price on Monday, accompanied by multiple trading halts. The following day, GameStop’s stock price skyrocketed by over 100%.
In facilitating the equity sale, AMC Entertainment enlisted the services of several prominent sales agents including Citigroup, Barclays, B. Riley Securities, and Goldman Sachs. These agents played a crucial role in executing the offering and ensuring its success. The fact that AMC was able to raise such a substantial amount of capital amidst the ongoing meme stock frenzy speaks to the heightened interest in the company and its stock.
AMC Entertainment’s recent equity offering has garnered significant attention and investment from the market, thanks in part to the resurgence of meme stock trading and the influence of key figures like Roaring Kitty. The company’s ability to capitalize on the current market conditions and raise substantial capital reflects positively on its strategic decision-making and capital-raising capabilities. As the meme stock craze continues to unfold, it will be interesting to see how AMC and other companies navigate these volatile market conditions.