AMC Entertainment Holdings Inc., the U.S. movie-theater chain controlled by China’s second-richest man, jumped in its trading debut after raising about $332 million in an initial public offering.
The shares rose 5 percent to $18.90 in New York today, after the company sold 18.42 million Class A shares for $18 each. The shares had been offered for $18 to $20 apiece.
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.
The deal made Wang, who has a net worth of $12 billion according to the Bloomberg Billionaires Index, the largest theater owner in the world. Wanda will own about 80 percent of AMC after the IPO, the prospectus shows.
At the IPO price AMC has a value of $3.45 billion including debt. That’s seven 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.
The shares are listed on the New York Stock Exchange under the symbol AMC.
Citigroup Inc. and Bank of America Corp. managed the offering. AMC Entertainment has no relation to cable channel AMC Networks Inc.