Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

GameStop raises more than $1 billion in latest share offer

Stock MarketsJun 22, 2021 01:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A GameStop store is seen in the Jackson Heights neighborhood of New York City, New York, U.S. January 27, 2021. REUTERS/Nick Zieminski

(Reuters) -Videogame retailer GameStop Corp (NYSE:GME) said on Tuesday it had raised about $1.13 billion in its latest share offering, cashing in further on a social-media-driven surge in its stock price.

The company, whose shares are up more than 960% this year, was the spark in January for a battle casting hedge fund short-sellers against a pack of small-time investors organizing online.

It remains one of the hottest and most visible "meme stocks" and was up nearly 9% in premarket trading on Tuesday.

The company, like others of the social-media hyped stocks that have lit up Wall Street since January, has sold millions of dollars in new stock on the back of what institutional players say are speculative share moves unjustified by their businesses.

Cinema operator AMC Entertainment (NYSE:AMC), another meme play, completed two share issues in three days earlier this month, while Torchlight Energy on Monday upsized its own share sale to $250 million.

GameStop said it would use the net proceeds from the offering, which adds to $551 million it raised in late April, for general corporate purposes as well as for investing in growth initiatives.

The company is trying to pivot to e-commerce and recently hired a former Amazon (NASDAQ:AMZN) official as its new chief executive officer to steer it through the transition.

Its shares dipped sharply when it announced the share offer earlier this month and have fallen another 10% since, even after Tuesday's initial moves.

White Square Capital, a London-based hedge fund that suffered losses betting against GameStop during the first meme stock rally in January, is shutting down, the Financial Times reported on Tuesday.

GameStop raises more than $1 billion in latest share offer
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
viswjeet kumar
viswjeet kumar Jun 22, 2021 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I Think..Now No Game Here..
Eudon Hickey
Eudon Hickey Jun 22, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why not short Goldman Or JP Morgan??? The way they shorted other stocks
David Beckham
David Beckham Jun 22, 2021 10:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buy gme
Ori The Ape
Ori_The_Ape Jun 22, 2021 9:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yet somehow the bears will create a fake narrative, like they do with their fake shorts, out of thin air and try to make people think that a company that raises capital is actually a bad move. Laughable at best. The bear narrative of GME is weak and full of bad actors that spew lies and never elaborate, the bullish DD however are extremly detailed and make sense.  The Bulls and the retail investors will win this one. Sorry Wall St.
Wicked Pete
Wicked Pete Jun 22, 2021 9:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I couldn't have said it better. 👏
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email