AMC Raises $250 Million in Stock Sale as Meme Stock Surge

By Thea Felicity

May 14, 2024 12:14 PM EDT

AMC Theatres Reopens Its Doors By Celebrating 100 Years Of Operations With
LAS VEGAS, NEVADA - AUGUST 20: A sign welcoming guests back and a message about required mask usage are posted on a front door at AMC Town Square 18 on August 20, 2020 in Las Vegas, Nevada. AMC Theatres reopened more than 100 of its movie theaters across the United States today, with new safety precautions in place, for the first time since closing in March because of the coronavirus (COVID-19) pandemic. In celebration of its 100th anniversary, the world's largest theater chain is welcoming guests back with a "Movies in 2020 at 1920 Prices" promotion for one day by offering 15-cent tickets to classic and previously-released films and USD 5 concession items. Starting on August 21, older movies will be shown for USD 5 a ticket. According to AMC, enhanced cleaning and safety protocols include disinfecting theaters before each show, mandatory face coverings for employees and customers, upgraded air filtration systems where possible, and high-touch points cleaned throughout the day. Hand sanitizer and disinfectant wipes are available throughout the theaters, auditoriums are at 40 percent capacity or less, and concession menus have been simplified for shorter lines and quicker service.
(Photo : Ethan Miller/Getty Images)

AMC Entertainment successfully concluded a $250 million stock sale on Monday, May 13, amid the resurgence of the meme stock craze. Shares skyrocketed by 90%, per CNBC.

This means that AMC took advantage of the excitement caused by the resurgence of "Roaring Kitty" by selling 72.5 million shares through an at-the-market equity offering that began on Mar. 28. They sold these shares for an average price of $3.45 per share, excluding commissions and fees.

Following the sale announcement, AMC's stock price surged by an additional 94% on Tuesday, May 14, prompting a temporary halt in trading due to the heightened volatility. 

Now starting at $3.52 on Monday, a 21% increase from Friday's closing, AMC took advantage of the heightened prices to complete its equity sale. 

Ultimately, AMC's stock reached an intraday high of $5.88, more than doubling its initial value, before closing the day with a remarkable increase of over 78% at $5.19.

READ NEXT: Roaring Kitty: Man Behind 2021's Meme Stock Surge, Driving GameStop, AMC Rally Again

What Is Meme Stock

Meme stock refers to a publicly traded company whose stock price experiences high volatility and trading activity driven largely by social media trends, particularly on platforms like Reddit and Twitter. 

These stocks often gain attention and momentum through viral memes, online discussions, and collective investor actions rather than traditional financial metrics or fundamentals. Examples of meme stocks include GameStop and AMC Entertainment, which have seen rapid and sometimes dramatic fluctuations in their stock prices fueled by online communities of individual investors.

As previously reported by VCPost, Roaring Kitty, also known as Keith Gill, became a central figure in the 2021 meme stock surge, particularly in driving up the prices of stocks like GameStop and AMC Entertainment through his online advocacy and investment analysis shared on platforms like Reddit. 

His involvement and influence contributed to the resurgence of interest and trading activity in these meme stocks, which is why AMC saw a massive increase in its stock sales.

READ MORE: Wednesday Stock Market Notes: S&P 500, Nasdaq Rise, Dow Falls; Warner Bros. Discovery Halts Paramount Merger Talks, OpenAI Hits Back NYTime

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