AMC Raises $250 Million in Stock Sale as Meme Stock Surge
By Thea Felicity
May 14, 2024 12:14 PM EDT
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May 14, 2024 12:14 PM EDT
(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
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.
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