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AMC Entertainment, the United States cinema chain controlled by the second-richest man in mainland China, is inviting members of its customer loyalty plan to buy shares in a US$368 million public offering along with Wall Street investors.
Members of the programme, called Stubs, could buy and sell US$100 to US$2,500 worth of stock with no fees through an initial public offering website called Loyal3.com the company said on Wednesday.
The cinema operator is also letting its employees reserve shares.
Offering shares in an initial public offering to a company's customers is unusual, according to Adriana de Lozada, a senior analyst at PrivCo, a research company.
Interest in AMC was expected to come from smaller investors because the company planned to pay dividends, de Lozada said.
The move might allow AMC to raise the price range for its share offering, she said.
"They have healthy growth but it's not rocket growth," de Lozada said. "So it's a stable stock for retail investors."
AMC, owned by Dalian Wanda, plans to sell 18.4 million shares at US$18 to US$20 each, according to filings.
Dalian Wanda, which bought AMC last year for US$2.6 billion including debt assumption, is China's largest entertainment company.
Dalian Wanda is led by Wang Jianlin, whose estimated net worth of US$12.2 billion was the highest in mainland China until this week, when he was eclipsed in the rankings by Robin Li Yanhong, the founder of Baidu.com also listed at US$12.2 billion.
"We're offering this exclusive employee benefit to our AMC Stubs members to express our sincere gratitude for your loyalty," company president and chief executive Gerry Lopez said in a letter to club members.
Stubs members pay US$12 a year for rewards, such as US$10 in credit for every US$100 spent at company cinemas, according to AMC's offering documents.
The programme had 2.5 million households participating as of September, representing about 20 per cent of weekly box office revenue, according to filings.
AMC is the second-largest cinema chain in the US in terms of revenue, trailing Regal Entertainment. The proposed public offering would value the company at up to US$1.9 billion, with Dalian Wanda planning to retain an 80 per cent stake.


Film fans get starring role in AMC float

An AMC cinema in Monterey Park, California. The company is offering shares to its loyalty club members. Photo: Bloomberg

Business

Banking & Finance

AMC Entertainment, the United States cinema chain controlled by the second-richest man in mainland China, is inviting members of its customer loyalty plan to buy shares in a US$368 million public offering along with Wall Street investors.
