GameStop raises $326 million
GameStop Corp. announced on Tuesday that they have raised about $326 million in the second biggest initial public offering of the year. GameStop is the #1 US specialty retailer of video game software and are a unit of U.S. bookseller Barnes & Noble Inc.
GameStop sold about 18.1 million Class A shares at $18 each, within the expected range of $17 to $19 each. The price gave GameStop a market value of $974 million based on 54.1 million Class A and B shares outstanding. The IPO ranks as this year's second biggest, behind the $980 million offering by Loews Corp.'s Lorillard tobacco unit, Carolina Group.
Sales for GameStop are expected to have risen to $1.12 billion for the fiscal year ended Feb. 2 from $757 million in the prior fiscal year. GameStop plans to use $250 million of the proceeds from the sale to retire intercompany debt owed to Barnes & Noble. Barnes & Noble will retain a two-thirds stake in the company following the initial sale, in the form of Class B shares.
2/12/2002 Matt Stensrud