Tags: AMC | Theater | Chain | IPO

AMC Theater Chain Prices IPO at Bottom of Range

Tuesday, 17 Dec 2013 08:54 PM

AMC Entertainment Holdings Inc., the U.S. movie-theater chain controlled by China’s third-richest man, raised about $331.6 million in its initial public offering.

The company, which invited members of its customer loyalty plan to take part in the IPO, sold 18.42 million Class A shares for $18 each, after offering them for $18 to $20 apiece, according to data compiled by Bloomberg. The shares, listed on the New York Stock Exchange under the symbol AMC, are expected to start trading Wednesday.

The IPO marks AMC’s return to the public markets after nine years. The Leawood, Kansas-based company was acquired by a private-equity group in 2004 and then merged with Loews Cineplex Entertainment Corp. Dalian Wanda Group, led by Wang Jianlin, purchased AMC last year for $2.6 billion including debt.

At the IPO price AMC has a value of $3.45 billion including debt. That’s 7 times MKM Partners LLC’s forecast for 2014 earnings before interest, taxes, depreciation and amortization of $490 million. Regal Entertainment Group and Cinemark Holdings Inc., both have an enterprise value of over 7.8 times Ebitda, data compiled by Bloomberg show.

Members of AMC’s customer loyalty program, called Stubs, could buy $100 to $2,500 worth of stock in the IPO without paying fees, the company said in a regulatory filing. Stubs had 2.5 million households participating as of September, representing about 20 percent of the weekly box office revenue, according to AMC’s offering documents.

AMC’s IPO is the fourth-largest of a theater chain, data compiled by Bloomberg show. National CineMedia Inc. and Cinemark Holdings Inc. raised $1.4 billion between them in 2007, while Regal Entertainment raised $393 million in 2002, data compiled by Bloomberg show.

Citigroup Inc. and Bank of America Corp. managed the offering. AMC Entertainment has no relation to cable channel AMC Networks Inc.

© Copyright 2017 Bloomberg News. All rights reserved.

 
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AMC Entertainment Holdings Inc., the U.S. movie-theater chain controlled by China's third-richest man, raised about $331.6 million in its initial public offering.
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Tuesday, 17 Dec 2013 08:54 PM
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