GameStop raises $2.9 billion on back of Roaring Kitty-led stock rally
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The video game retailer has raised more than US$3 billion over the past month through share sales as retail investors powered the stock higher.
PHOTO: REUTERS
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Bengaluru - GameStop raised roughly US$2.14 billion (S$2.9 billion) from a share sale programme as it capitalised on a stock rally after Mr 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 June 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 June 11 shortly after 1.30pm 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 Mr Gill, who operates under the Roaring Kitty moniker, made his highly anticipated return to YouTube
The sale comes on top of the US$933 million GameStop raised in May 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
