U.S. movie chain AMC Entertainment Holdings Inc intends to gather up to USD 368 million in its initial public offering. In a statement, the Leawood, Kansas-based company said it plans to offer 18.4 million shares priced at USD 18 to USD 20 apiece for the IPO. Some of the proceeds from the share sale will be used by the firm to pay debt. It will also be used for general corporate purposes. In August, AMC said it was seeking to raise USD 400 million for its IPO.
According to a Bloomberg report, the sale of Class A shares would pave the way for the second largest US theater chain in terms of revenue to again become publicly listed after nine years. Last year, Dalian Wanda Group purchased AMC for USD 2.6 billion. The price tag included the company's debt assumed by the acquirer which is the largest entertainment firm in China. Dalian Wanda is led by Wang Jianlin, who is the richest man in China with a net worth of USD 12.4 billion based on the Bloomberg Billionaires Index.
AMC was a public firm before it was bought by Apollo Global Management and JPMorgan Chase & Co in 2004. It was later merged with Loews Cineplex, another movie chain owned by private equity firms Bain Capital, Carlyle Group and Spectrum Equity Investors. In May last year, Dalian Wanda acquired the movie chain.
The statement said the joint book running managers and representatives of the underwriters for the offering are Citigroup and BofA Merrill Lynch. AMC also intends to give underwriters the option to buy an added 2.63 million of Class A stock. AMC has filed an application to list on the New York Stock Exchange with the ticker "AMC."
In its filing dated November 27, AMC said the theater industry is in the midst of transition as the focus of companies is now on the quality of sound, picture and comfort than on physical growth.
Join the Conversation