AMC Entertainment recently made headlines by raising approximately $250 million through a new equity capital sale. This move came during a period characterized by the resurgence of meme stocks, fueled in part by the return of “Roaring Kitty.” The company initiated an at-the-market equity offering on March 28, ultimately selling 72.5 million shares at an average price of $3.45 per share.
Following the news of the equity offering, AMC’s stock price experienced significant volatility. The stock surged by 94% on Tuesday, prompting a temporary halt due to the rapid movement. Opening at $3.52 on Monday, AMC’s stock saw a 21% increase from the previous session, likely incentivizing the company to proceed with the offering at higher prices. Throughout the trading day, AMC’s stock more than doubled, reaching an intraday peak of $5.88, and closing at $5.19, up over 78% from the previous close.
“Roaring Kitty,” the figure who played a pivotal role in the meme stock frenzy of 2021, made a return with a cryptic image that triggered a buying frenzy among amateur traders. This resurgence in interest extended beyond AMC, as GameStop also experienced significant growth, with its stock price surging by 74% on Monday and over 100% on Tuesday. The involvement of key sales agents such as Citigroup, Barclays, B. Riley Securities, and Goldman Sachs further underscored the frenetic trading activity surrounding AMC’s equity offering.
The events surrounding AMC’s equity offering highlight the ongoing interest and volatility associated with meme stocks in the market. The utilization of at-the-market offerings as a means of raising capital during periods of heightened investor enthusiasm adds a new dimension to the evolving landscape of stock trading. As companies navigate these dynamics, it remains crucial to monitor both market fundamentals and speculative trends to maintain stability and capitalize on opportunities presented by meme stock fervor.
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