AMC Entertainment raised approximately $250 million in new equity capital on Monday through an at-the-market equity offering. The movie theater operator sold 72.5 million shares at an average price of $3.45 per share before commissions and fees. This move came during a renewed meme stock craze triggered by the return of “Roaring Kitty,” who inspired the meme stock mania of 2021. The average selling price of the shares was on the lower end of Monday’s wild trading, where AMC shares more than doubled, peaking at $5.88 intraday before closing at $5.19.
Roaring Kitty’s reappearance online with a cryptic image of a man leaning forward in a chair sparked a buying frenzy among amateur traders. This resurgence in interest led to a surge in GameStop shares as well, with the video game company seeing a 74% increase in stock price on Monday, followed by a further 130% in premarket trading on Tuesday. The activity surrounding meme stocks like AMC and GameStop has once again captured the attention of investors and traders, creating excitement and volatility in the market.
The equity offering by AMC was announced on March 28, but the company waited until Monday to complete it, capitalizing on the enthusiasm surrounding meme stocks generated by the return of Roaring Kitty. Citigroup, Barclays, B. Riley Securities, and Goldman Sachs acted as sales agents for the offering, helping raise the much-needed capital for AMC Entertainment. The significant interest in meme stocks has once again brought attention to these companies and their potential for volatile price movements.
AMC shares more than doubled in premarket trading following the completion of the equity offering, demonstrating the impact of the capital raise on investor sentiment. The average selling price of $3.45 per share was at the lower end of the price range seen during Monday’s trading, where AMC experienced significant price fluctuations. The boost in AMC’s stock price shows the influence of meme stock trading and the power of online communities in driving market movements, even amid regulatory scrutiny and concerns about market manipulation.
The involvement of Roaring Kitty in the resurgence of meme stock trading has reignited interest in companies like AMC and GameStop, leading to sharp price increases and heightened volatility. The return of this phenomenon has captured the attention of both retail and institutional investors, with a focus on the potential for quick gains in meme stocks. The actions of amateur traders and online communities can have a significant impact on stock prices, creating opportunities for profit but also raising concerns about market stability and regulation in the face of such extreme price movements.
Overall, the renewed meme stock craze triggered by the return of Roaring Kitty has once again put companies like AMC Entertainment in the spotlight, attracting investor interest and driving significant price movements. The completion of the equity offering allowed AMC to raise much-needed capital, further fueling the excitement surrounding meme stocks and their potential for rapid gains. With the involvement of prominent sales agents and the influence of online communities, meme stocks continue to be a source of fascination and speculation in the market, showcasing the power of retail investors in driving market dynamics.
