AMC completes $250M stock sale in meme rally, shares jump 20%

AMC Entertainment raised about $250 million in new equity capital, completing the sale Monday during the revival of the meme stock craze sparked by the return of “Roaring Kitty.”

The cinema operator sold 72.5 million shares in an at-the-market stock offering it launched on March 28. AMC sold those shares at an average price of $3.45 per share before commissions and expenses, the filing said.

AMC shares jumped another 22% on Tuesday following news of the sale. The stock more than doubled at one point earlier in the session and trading was halted due to volatility.

The company’s shares opened at $3.52 on Monday, up about 21% from Friday, likely prompting AMC to complete its stock sale at these high prices. As Monday’s wild trading continued, AMC more than doubled to an intraday high of $5.88. The stock closed Monday’s session up more than 78% at $5.19.

Roaring Kitty, the man who inspired the stock market mania of 2021, 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 with a series of trading halts due to volatility.

The video game seller soared more than 100% early Tuesday.

Citigroup, Barclays, B. Riley Securities and Goldman Sachs were the sales agents for the AMC stock offering.