A trader works as a screen displaying trading information for GameStop on the floor of the New York Stock Exchange on May 15, 2024.
Brendan McDermid | Reuters
GameStop shares rose 25% in premarket trading Tuesday after the company announced Friday it gained about $933 million from a stock sale.
Shares of the video game retailer were up 25.11% as of 6:43 a.m. ET in the United States. Markets are expected to reopen Tuesday after remaining closed Monday for Memorial Day.
GameStop said Friday it earned nearly $933.4 million from selling 45 million shares of common stock.
See the table…
GameStop Stock
The company did not disclose what price the shares were sold for, but said the transaction was a so-called “at-the-market” offering. This means that the shares were sold at the market price and not at a predetermined price. Plans to sell shares were announced earlier this month, amid a resurgence in the meme stock craze.
The sale comes after the “Roaring Kitty” social media account, which was behind the 2021 short squeeze of companies including GameStop, went live again for the first time since that time.
GameStop shares jumped dramatically as the stock was caught up in the frenzy, reaching a high of $64.83 on May 14, up more than 200% from the May 10 close. Shares fell again soon after, closing down more than 50% from highs. a few days later, on May 16.
— CNBC’s Yun Li contributed to this report.
Gn headline
News Source : www.cnbc.com
