GameStop (GME) Completes IPO of 20 Million Shares Offering $400 Million Cash Raise

GameStop (GME) has been doing a lot lately, and the latest is completing the sale of 20 million shares. This offering-to-market (ATM) program raised $400 million in cash, before offering fees and expenses.

GameStop (GME) issued a press release on September 23, 2024, stating that it has completed a stock market offering program. The Company sold 20,000,000 shares of its common stock for gross proceeds of approximately $400 million. GameStop intends to use the net proceeds for its businesses, which may include acquisitions and investments.

This latest share sale is the third time shareholders have been diluted this year, impacting potential short squeezes. Apart from this, the company now has over $4.5 billion on its balance sheet and is valued at $9.5 billion. It will be interesting to see what GameStop chooses to do with this new cash injection.

Recently, GameStop CEO Ryan Cohen was fined nearly $1 million. This is because it did not file an HSR form before completing the purchase of over half a million Wells Fargo voting securities.

On the investor side, Roaring Kitty’s June YOLO update showed 9 million GME shares and no call options held. As Asif Khan wrote, based on Gill’s previous posts to Reddit, “we can gather that he probably exercised 40,010 of the 120,000 GameStop $20 call strike options expiring on June 21, 2024, and sold the rest to help to the financing of the purchase of shares”.

Check out our GME Topics page for ongoing coverage of GameStop and people close to the company.