Wild ride: AMC cashes in on rally to sell more shares

A rally driven by Reddit-fuelled day traders has pushed up shares of AMC about 3,000 percent this year.

AMC Entertainment Holdings Inc. is cashing in on its wild stock rally by selling more shares, a move that could raise hundreds of millions of dollars for a cinema chain that was staring at potential bankruptcy only a few months ago. AMC fell 17% at the open to $51.83, after fluctuating in premarket trading. The company said it plans to sell up to 11.55 million shares at market prices to repay debt and finance future acquisitions. Even at that price, AMC could take in nearly $600 million. “It would be irresponsible for the board and management to not do a raise to secure the balance sheet at these levels,” said Greg Taylor, chief investment officer at Purpose Investments.