GameStop (GME) shares are surging in after-hours following an announcement seeking a stock split.
The video game retailer’s stock gained as much as 20%, surpassing the $200 level.
The company said in an 8-K SEC filing it plans to request stockholder approval at its upcoming annual shareholder meeting to increase the number of authorized Class A shares from 300 million to 1 billion in order to implement the split through a dividend.
Retail traders bullish on the flagship meme stock expressed their enthusiasm.
“GameStop also intends to request stockholder approval at the Annual Meeting for a new incentive plan (the “2022 Equity Plan”) to support future compensatory equity issuances,” said the filing.
“GameStop’s Board of Directors has approved both stockholder proposals, but the stock dividend will be contingent on final Board approval,” it went on.
GameStop shares were on a tear over a span of 10 days in March after chairman Ryan Cohen bought 100,000 shares of the video game retailer earlier this month.
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre
Read the latest financial and business news from Yahoo Finance
Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn
..
