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The common shares of the theatre chain operator fell 38% to $3.25 in premarket trading, while its preferred shares rose 18% to $2.09.
AMC aims to increase its Class A common stock to 550 million from about 524 million, it said in a regulatory filing.
The company would make a settlement payment of one Class A common stock for every 7.5 Class A shares to the entitled shareholders after the reverse stock split.
The move follows a revised stockholder settlement, which was approved by a Delaware judge last week.
AMC was sued in February for allegedly rigging a shareholder vote that would allow it to convert preferred stock to common stock and issue hundreds of millions of new shares.
