GameStop stated it will problem extra shares because the US online game retailer reported falling second-quarter income as shoppers shunned bricks-and-mortar shops in favour of on-line purchases.
The corporate stated on Tuesday that proceeds from the 20mn shares can be used “for normal company functions, which can embody acquisitions and investments”.
On the closing value of $23.45, the brand new sale would usher in $479mn of money, earlier than charges, including to its $4.2bn conflict chest.
GameStop, on the centre of the 2021 meme-stock frenzy, stated it will rein in prices and shut “underperforming shops”.
The corporate reported quarterly income of $798.3mn, down from $1.16bn a 12 months earlier. Web earnings was $14.8mn, in contrast with a internet lack of $2.8mn a 12 months earlier.
Shares have been 3.3 per cent decrease in after-hours buying and selling.