AMC shares plunge 27% after $200M stock offering

AMC Entertainment’s stock plunged 27% on Tuesday after the company announced a $200 million registered direct offering of more than 95 million common shares priced at $2.10 apiece. The offering is expected to close on June 24, 2026, subject to customary closing conditions. Roth Capital Partners is the sole placement agent and net proceeds are expected to be about $189 million after fees and expenses.

Most of the proceeds are planned for debt reduction, including the redemption of $125.5 million in 6.125% Senior Subordinated Notes due 2027. Any remaining funds are slated for general corporate purposes, which may include additional debt repayment, liquidity support and upgrades to theatres.

Investors focused on dilution from the issuance. The transaction will increase the number of outstanding shares by more than 95 million, reducing existing shareholders’ percentage ownership and lowering expected earnings per share. Trading showed a steep sell-off after the company disclosed the offering.

The equity sale follows a $150 million at-the-market offering completed days earlier that involved more than 105 million shares. AMC shares had risen about 77% from Jan. 1 through Monday’s close, supported in part by stronger box office traffic.

AMC and its ODEON locations reported that the opening weekend for Toy Story 5 drew more than 4.8 million moviegoers worldwide, marking the busiest U.S. weekend of the year for the chain. Management has pursued steps to strengthen the balance sheet and increase liquidity while funding customer experience investments and theatre upgrades.

The company said that if proceeds are used as planned, the offering would reduce interest obligations tied to the subordinated notes. The transaction remains subject to closing conditions.