(CNBC) Shares of video game retailer GameStop rose more than 16% on Friday premarket after the company said it was seeking shareholder approval for a stock split.
GameStop said that it seeks to increase its Class A common stock to 1,000,000,000, from 300,000,000 to partly do a split in the form of a stock dividend.
The company said that a portion of the increased shares could be spent for other means. The gaming retailer also wants the authorization to pave the way for flexibility in the case of future corporate needs.
The news comes when GameStop shares have added more than 35% this month. The gains were boosted by an earlier announcement by its chairman that he bought more than 100,000 shares, taking his total ownership in the retail-loved company to 11.9%.
GME: NYSE is up 16.23%.
