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GameStop Completes $933M Equity Offering, Shares Surge 20% After Hours

May 24, 2024, 08:20 PM

GameStop Corp. has completed its 'at-the-market' equity offering program, selling 45 million shares for gross proceeds of approximately $933.4 million. This sale, which was first announced on May 17, 2024, increased the total shares outstanding by about 15%. Following the announcement, GameStop's stock surged nearly 12% in after-hours trading, with some reports indicating gains of up to 18% and 20%. The company's successful capital raising has been viewed as a strategic move to strengthen its balance sheet, adding nearly $1 billion. The stock's performance has been buoyed by retail traders, leading to significant after-hours trading activity.