AMC falls 6% after second share sale this week

FILE PHOTO: An AMC theatre is pictured in Times Square in the Manhattan borough of New York City, New York, U.S., June 2, 2021. REUTERS/Carlo Allegri

(Reuters) – Shares of AMC Entertainment fell 6% in early deals on Friday, a day after the Reddit darling completed its second share offering this week.

The cinema operator has taken advantage of a red-hot rally in its stock since mid-May to sell shares, raising $587.4 million on Thursday alone.

The company said late on Thursday it would ask shareholders to authorize the sale of 25 million additional shares, compared with its initial plan to ask for approval for 500 million shares.

AMC’s shares were trading at $48.25 before the bell after closing down 18% on Thursday. They hit a record high of $72.62 on Wednesday.

U.S.-listed shares of BlackBerry Ltd, another so-called “meme stock” that has gripped the attention of small-time traders on online discussion forums, were up 7%.

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