AMC is Public Yet Again
On Wednesday morning the public markets were welcomed to yet another high powered public offering. After spending almost a decade in private hands, AMC (NASDAQ:AMC) was back on the big board. The company decided to price its newly offered share $18 a piece, at the low end of the expected range. The company has really started to turn itself around in recent years, a renewed focus on customer quality has helped the company raise its prices for customers. New seats, cleaner theaters, and better quality film has kept customers returning to the theaters.
As of September 30, 2013, AMC owned, operated or held interests in 343 theatres with a total of 4,950 screens primarily in North America. AMC’s theatres are for the most part located in major metropolitan markets, which AMC believes gives its circuit a unique profile and offer strategic advantages. The company has a strong positipm in many to markets; AMC’s top five markets, in each of which AMC holds the #1 or #2 share position, are New York (42% share), Los Angeles (27%), Chicago (44%), Philadelphia (29%) and Dallas (28%). As of the most recent reported data, these five metro markets comprised 40% of AMC’s revenues and 38% of its attendance
Shares of the company traded to the upside following the offering. At the time of this writing shares of the company were higher by $1.50 per share to $19.50. It will be interesting to see if the under priced shares can continue higher in the rest of the week. It is expected that the company will be offering its investors an industry leading 4.2 percent dividend yield. At the time of this writing, the company’s market capitalization stood at $1.9 billion. The broad market averages were largely unchanged at the time of publication.
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