IPO raises more than $314 million for the theater chain
AMC Entertainment, the nation’s second-largest theater chain, announced their initial public offering of its Class A stock at $18 per share, the low-end of its projected price range.
The company has more than 18,400,000 shares, which began trading Wednesday morning on the New York Stock Exchange and on a regular way basis on Dec. 23.
According to a statement issued by AMC, the net proceeds of the offering are projected to be approximately $314.2 million, which AMC plans to use primarily to pay off debt, as well as for capital spending, which is likely to include renovations and other theater upgrades.
As an unusual strategy, AMC is offering members of its customer loyalty program called Stubs to purchase between $100 and $2,500 worth of stock without paying fees. The Stubs program, which costs $12 annually, has roughly 2.5 million members.
AMC, which is owned by mega Chinese conglom Dalian Wanda Group, has been in a quiet period due to the Kansas City-based circuit’s pending IPO.
The company operates 343 locations with 4,959 screens mostly in the U.S.