Gamestop plans capital increase

The American video game retailer could earn up to a billion dollars – and thus make a profit from its spectacular stock rally for the first time.

The shares of the video game retailer Gamestop soared at the end of January - now the company could use the price rush in its favor.

Dhe American video game retailer Gamestop plans to issue up to 3.5 million new common shares at the current market price. The company filed a corresponding application with the US Securities and Exchange Commission on Monday. The American investment bank Jefferies was commissioned with the issue. With the capital increase, the company could raise up to a billion dollars, but not more, as Gamestop explains.

The financial news agency Bloomberg writes that it is one of the largest capital increases in the retail sector, i.e. for private investors. After the announcement, the share price initially fell 14 percent, but recovered again and closed 2.4 percent lower on Monday. Gamestop has left open exactly when the shares will be offered. Back in December, the company filed an SEC filing for a $ 100 million capital increase, but failed to carry it out.

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To the detailed view

Now, for the first time, the video game retailer could also profit from its spectacular stock rally. While the share was trading at just under $ 12 in mid-December 2020, the price rose to over $ 345 at times by January of this year. The share currently costs $ 187. Large hedge funds had bet on falling prices of the company, private investors bet against it and stocked up on Gamestop titles.

The money from the capital increase is intended to accelerate the “transformation” of the company and further strengthen the balance sheet. On Monday, Gamestop also published preliminary figures for the current financial year. Compared to the previous year, sales increased by 11 percent in the first nine weeks of 2021.