GameStop raises about $1 billion in latest equity offering

Videogame retailer GameStop Corp said on Tuesday it had raised about $1.13 billion in an offering of 5 million shares, cashing in on a Reddit-driven surge in its stock price this year.

GameStop, whose shares are up more than 960 per cent this year, has become one of the hottest and most visible "meme stocks" followed on social media after its meteoric rise in a Reddit-driven retail short squeeze that caught Wall Street off guard in January.

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The company will use the net proceeds from the offering for general corporate purposes as well as for investing in growth initiatives, the company said.

GameStop is trying to pivot to e-commerce and recently named a chief executive and a finance head to steer it through the transition.

Shares of the company were up 9.3 per cent in premarket trading on Tuesday.