GameStop shares rise 21% in early trade after completing stock sale

GameStop shares rise 21% in early trade after completing stock sale

A trader works as a screen displays the trading information for GameStop on the floor at the New York Stock Exchange on May 15, 2024.

Brendan McDermid | Reuters

GameStop shares rose 21% in premarket trading on Tuesday after the company on Friday announced that it had made around $933 million from a stock sale.

Shares in the videogame retailer were up 20.68% at 6:14 a.m. ET in the U.S. Markets are set to re-open on Tuesday after remaining closed on Monday for Memorial Day.

GameStop said on Friday it made close to $933.4 million by selling 45 million common shares.

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GameStop shares

The company did not disclose what price the shares were sold at, but said the transaction was a so-called “at-the-market” offering. This means shares were sold at market price and not a predetermined one. Plans for the stock sale had been announced earlier this month, amid a resurgence of the meme stock craze.

The sale comes after the social media account “Roaring Kitty”, which was behind the 2021 short squeeze of companies including GameStop, posted online again for the first time since that period.

GameStop shares surged dramatically as the stock got caught up in the frenzy, reaching a high of $64.83 on May 14, up more than 200% from the close of May 10. Shares fell again shortly afterward, closing more than 50% down from the highs just days later, on May 16.

— CNBC’s Yun Li contributed to this report.

Original news source Credit: www.cnbc.com

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