AMC’s ‘APEs’ start trading on the NYSE

AMC Entertainment Holdings Inc.’s
AMC,
-37.51%
AMC Preferred Equity Units, or APEs
APE,
,
began trading on the New York Stock Exchange on Monday, opening at $6.95. The stock rose 36.2% to trade at $9.35 shortly after the open. Shares of AMC Entertainment Holdings Inc. plunged prior to the APE debut, falling 37.4% in premarket trading. AMC’s stock was down 31.5% shortly after market open on Monday. The company’s shares closed down 6.8% at $18.02 Friday, compared with the S&P 500 Index’s
SPX,
-1.68%
1.3% decline. With the special dividend, the cinema chain is taking aim at its massive debt burden. The APE name is a nod to the investors who turned the company into a meme stock, who often refer to themselves as “apes” or “ape nation.” The dividend also marks the latest move in a fight over stock issuances. AMC shares, which skyrocketed last year amid the meme stock buying frenzy, have fallen 33.8% in 2022, compared with the S&P 500 Index’s decline of 11.3% over the same period. However, in the last three months AMC shares have risen 55.6%, outpacing the S&P 500’s gain of 8.4%. Of eight analysts surveyed by FactSet, three have a hold rating and five have a sell rating for AMC.