AMC Entertainment Makes a $900 Million Mistake

In theory it shouldn't matter how or why AMC Entertainment Holdings (NYSE: AMC) finally got its stock into double digits for the first time in more than a year on Wednesday. The multiplex operator had raised more than $1.9 billion since April of last year, and a buoyant share price would be the ideal opportunity to raise some more liquidity at pre-pandemic price points.

It didn't work out that way. AMC announced on Wednesday that it sold 63.3 million shares as part of its at-the-market equity program. The problem is that it pushed out the freshly printed shares on Monday at an average price of $4.81 a share. It raised $304.8 million in the process. If the country's largest movie theater chain had timed its stock sale near the close of Wednesday's trading those same 63.3 million shares could've raised more than $1.2 billion. Sometimes 48 Hrs. is more than just an Eddie Murphy and Nick Nolte flick. Sometimes not waiting 48 hours can be a $900 million mistake.

Image source: Getty Images.

Source Fool.com