GameStop Corp shares fell 13% on Monday after the video game retailer said it may sell up to 3.5 million shares as it tries to take advantage of the stock price surge following a Reddit-driven trading frenzy earlier this year.
The share sale would fetch the company more than $670 million at Thursday's closing price of $191.45. The shares have gained more than 900% so far this year and had at one point hit $482.95 as retail traders bet against Wall Street hedge funds that had shorted the stock.
GameStop said it would use the proceeds from the share offering to speed-up the shift in its business model to e-commerce, a plan that is being led by top shareholder and board member Ryan Cohen.
The company said it has filed the at-the-market equity offering prospectus with the US Securities and Exchange Commission.
Separately, GameStop said global sales for the nine-week period ending April 4 rose about 11%.
Its shares were down at $166 in premarket trading.