GameStop's Successful Paid-in Capital Increase Drives Stock Price Up 10%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] U.S. video game retailer GameStop's stock price surged after successfully completing an additional paid-in capital increase.

According to CNBC on the 22nd (local time), GameStop announced that it completed the sale of 5 million shares through an ATM (at-the-market offering) method, raising $1.13 billion (approximately 1.2645 trillion KRW).

ATM is a method where a listed company issues new shares and transfers them to an investment bank (IB), which then sells portions of the shares at market price whenever the company desires.

Following this news, GameStop's stock price rose 10% on the New York Stock Exchange that day.

GameStop had previously raised $551 million by selling 3.5 million shares using the same method in April.

CNBC reported, "Investors seem encouraged by GameStop's transition to an e-commerce company, despite concerns about dilution of shares due to the paid-in capital increase."

Earlier this month, GameStop appointed Matt Furlong, a former executive of Amazon, the world's largest e-commerce company, as CEO, and subsequently recruited other former Amazon employees as COO, CTO, and CGO.

GameStop's stock price has surged over 1100% this year, thanks to individual investors centered around the Reddit community 'WallStreetBets' actively buying shares to counter hedge funds' short-selling attacks at the beginning of the year.

This content was produced with the assistance of AI translation services.