Exhibitor AMC Entertainment surprised Wall Streeters late Thursday by canceling its $789 million initial public offering, citing “adverse market conditions.”
That verbiage had observers scratching their heads, given the roaring Dow index in recent weeks. AMC, owned by a consortium of private investors including J.P. Morgan Partners and Apollo Management, had planned to sell 39.5 million shares this week for $18-$20 apiece, according to Bloomberg.
J.P. Morgan and Apollo spearheaded the $1.14 billion buyout of Kansas City, Mo.-based theater chain in 2004. AMC Entertainment controls the controls the AMC and Loews chains, which owns 382 theaters with 5,340 screens, most of them in the U.S., Canada.