AMC stock split: Shares dive on announcement of proposed reverse stock split and capital raise

AMC Entertainment (AMC) confirmed on 14 March 2023 that investors had approved a 1-for-10 reverse stock split, along with an increase in authorised share capital. The reverse split consolidated every 10 shares into one, helping the company lift its share price and create scope for new fundraising.

Immediately after the approval, AMC’s share price fell by more than 15% on 15 March 2023, and has since continued to decline. As of November 2025, AMC stock trades around $2.40 per share on the NYSE – down over 99% from its 2021 peak and about 35% year-to-date.

The split also facilitated the conversion of all APE units into common shares, following a shareholder vote of approximately 978 million in favour. This step simplified AMC’s capital structure but significantly diluted existing shareholders.

Past performance is not a reliable indicator of future results.

AMC Entertainment overview

AMC Entertainment is one of the world’s largest cinema chains, founded in 1920 and headquartered in Leawood, Kansas. As of March 2023, AMC operated 943 theatres and more than 10,000 screens globally, with the US accounting for around three-quarters of total revenue.

The company employs over 25,000 people and earns most of its income from ticket sales and food and beverages, the latter being its most profitable segment. AMC went public in December 2013, listing shares at $18 each.

The stock became a focus during the 2021 'meme-stock' trend, reaching an all-time high of $72.62 in May 2021, driven by retail investor activity. However, extensive share dilution and continued operating losses have since weighed on its share price.

Past performance is not a reliable indicator of future results.

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What is a stock split?

A stock split is a corporate action that changes the number of a company’s shares in circulation without affecting its total market value. It adjusts the share count and price per share but does not change the company’s overall valuation.

In a regular (forward) split, the number of shares increases, while the price per share decreases proportionally. In a reverse split, the number of shares decreases, and the price per share rises accordingly.

Companies may use stock splits to make shares more accessible to investors or to improve trading liquidity, while reverse splits are often carried out to comply with exchange listing requirements or support future fundraising efforts.

A stock split does not affect an investor’s total position – it simply changes the share structure without altering overall value.

AMC stock split history

Prior to 2023, AMC had never conducted a stock split. The August 2023 reverse split was therefore its first, consolidating shares at a 1-for-10 ratio to maintain NYSE listing compliance and manage its share base more effectively.

Stock splits are corporate actions that change the number of shares outstanding without affecting overall market value. While a regular split increases share count and lowers the price per share, a reverse split reduces share count and raises the nominal share price.

AMC’s decision to implement a reverse split was primarily aimed at preserving its listing status and facilitating capital raising during a period of financial strain.

As of November 2025, there are no further stock splits proposed

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