GAMESTOP raised roughly US$2.14 billion from a share sale programme as it capitalised on a stock rally after Keith Gill talked up the shares following his return to YouTube.
The video game retailer has now raised more than US$3 billion over the past month through share sales as retail investors powered the stock higher. The latest sale of 75 million shares implied an average price of around US$28.49 each, according to Bloomberg calculations based on a statement on Tuesday (Jun 11).
The stock rose more than 5 per cent to US$32.27 in post-market trading, however, it remains well below a June peak of US$48. The stock rallied on Tuesday shortly after 1.30 pm in New York, a potential indication that the selling pressure was completed before the stock climbed 23 per cent to close at US$30.49.
Last week, GameStop unexpectedly released earnings and disclosed the plan to sell millions of new shares just hours before Gill, who operates under the “Roaring Kitty” moniker, made his highly anticipated return to YouTube, drawing in speculators. GameStop more than double in four days, before the stock cratered on Friday after the fundraising plan was announced.
The sale comes on top of the US$933 million GameStop raised last month and adds to the US$1.08 billion it had in cash and equivalents at the end of the last quarter. Jefferies is acting as the sales agent on the offering, the filing said. The company plans to use the haul for general corporate purposes, which may include acquisitions and investments.
Fellow retail trader darling AMC Entertainment Holdings also completed a share sale of its own earlier this year. BLOOMBERG
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