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

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

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.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Aditya Soni)