Shares of video game retailer GameStop Corporation (GME) experienced a significant surge in after-hours trading on Friday. This comes as the company announced the successful completion of its at-the-market equity offering program, which had been previously announced. GameStop managed to sell 45 million shares during the offering, generating aggregate gross proceeds of $933.4 million at an approximate share price of $20.74.

The net proceeds from this offering are intended to be utilized for general corporate purposes, including potential acquisitions and investments, according to GameStop. The announcement of the planned at-the-market offering and preliminary first-quarter financial results initially caused a decline in GameStop's share price.

However, the increase in the stock price during after-hours trading suggests that investors perceive the dilution as complete. Moreover, it appears that investors believe the current sale price undervalues GameStop shares. The return and subsequent exit of Roaring Kitty, a key figure in the GameStop short squeeze saga of 2021, has contributed to the high volatility of the company's shares.

In terms of price action, GameStop shares surged by 16% to $22.14 during after-hours trading on Friday. This notable increase follows the closing price of $19.00. Over the past 52 weeks, GameStop shares have traded in a range between $9.95 and $64.83.

The completion of the at-the-market equity offering program marks a significant milestone for GameStop. With the injection of substantial funds, the company now has more flexibility in pursuing its strategic objectives. The next few months will be crucial as GameStop navigates through the ever-changing landscape of the video game industry.

Disclaimer: The information provided above is based solely on the mentioned sources and does not constitute financial advice.