How Silver Lake Exited AMC Above the Top
It's been quite a couple of weeks for AMC Entertainment Holdings (NYSE: AMC) following extreme volatility driven by retail traders. Many heavily shorted stocks recently skyrocketed into the stratosphere. Much of the activity was attributed to Reddit's WallStreetBets forum, which is now coping with the aftermath. The trade has mostly unraveled now, and market conditions appear to have calmed down. However, it wasn't all for naught, as AMC was able to benefit fundamentally from the chaos.
Still, while AMC capitalized on the rally by selling stock to raise capital, its timing was quite poor. AMC sold 63.3 million shares through an at-the-market (ATM) offering at an average price of approximately $4.82. As soon as AMC completed the program, shares immediately soared to a 52-week high of $20.36. Ouch. In contrast, private equity firm Silver Lake timed its exit perfectly.
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Source Fool.com
